Three senior IRS officials charged, stripped of duty to panic with tax increase report



[ad_1]

New Delhi: The CBDT issued charge sheets Monday against three senior IRS officers with the rank of commissioner for “disorienting” young taxpayers and releasing “without authorization” a report calling for a tax increase to finance the economic consequences of the pandemic COVID-19.

The three IRS officers – Sanjay Bahadur (director of chief research, northeast region), Prakash Dubey (director DOPT, joint secretary of the IRS Association) and Prashant Bhushan (chief commissioner of income tax, Delhi, and secretary-general of IRS Association) – have received 15 days to file a written response in their defense to the charge sheets and also on whether they want to be heard in person.

The tax report called for an increase in tax rates, the imposition of wealth tax, inheritance tax and the imposition of the COVID-19 Surcharge, but the government quickly distanced itself from it, calling it “ill-conceived.”

According to sources, the action has been taken since the report created panic and uncertainty in fiscal policy in the already stressed economic conditions in the country.

Government sources said the preliminary investigation by the Central Board of Direct Taxes (CBDT) revealed the “role and complicity” of these senior officials in preparing the report called FORCE (Fiscal Options and Response to the COVID-19 Epidemic), that pleaded for hike taxes, imposition of wealth tax, inheritance tax, imposition of surcharge COVID-19.

The investigation showed that while Dubey and Bahadur managed to get junior officers to prepare a report and deliver it without authorization to the IRS Association that released it, Bhushan released it without authorization in the public domain, the sources said.

Sources also said that these senior officers, despite having decades of service experience, failed to exercise due care and continued to “disorient” the 50 young officers.

“The government definitely would have duly taken into account the suggestions made by the young officers. However, in this case, the reports, rather than being sent to the government through the official channel, were confused by these senior officials at the rank of chief commissioner. and they were made public with a report that created panic and uncertainty in fiscal policy in the already stressed economic conditions in the country, “said one of the sources.

The controversial report, prepared by some 50 young IRS officers, among other things, suggested raising the highest tax rate to 40 percent for income above a minimum threshold of Rs 1 crore or the reintroduction of the income tax. estate for those with a net worth of Rs 5 crore or more to help pay for the financial consequences of the coronavirus.

The income tax department said Sunday that the report did not reflect the official views of the CBDT and the finance ministry. He said an investigation is being launched into why the report was shared with the public.

“There is a report circulating on social media regarding suggestions from some IRS officials on how to address the COVID-19 situation. It is unequivocally stated that CBDT never asked the IRS Association or these officers to prepare such a report.” said the department. “The officers did not seek any permission before publishing their personal opinions and suggestions, which is a violation of the existing Rules of Conduct. The necessary investigation is being initiated in this matter.”

“It is reiterated that the contested report does not reflect the official views of the CBDT / Ministry of Finance in any way,” he said.

Bhushan had written a one-page prologue when he sent a FORCE report to the president and CBDT members. “The CBDT had sought feedback from our field formations across India on ideas to revive in various sectors of the economy,” it wrote on April 23.

Support the daily wage earners who have been most affected by the COVID-19 crisis. Click here to contribute to the cause. #IndiaGives

The Daily Bulletin News18 Coronavirus COVID-19: Get your copy here.

Subscribe to News18 Daybreak. Follow us Twitter,
Instagram
Facebook,
Telegram,
TikTok and in
Youtube

First Anniversary Offer: Sign up for the Moneycontrol PRO Annual Plan for ₹ 1 / – per day for the first year and claim exclusive benefits worth ₹ 20,000. Coupon Code: PRO365



[ad_2]