Shome spells out importance of TARC’s recommendations

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Shome spells out importance of TARC’s recommendations

t1-shome-parthasarathi100x90.jpg

The chairman of India’s Tax Administration Reform Commission (TARC), which completed its work earlier this year, has highlighted an increased customer focus, the desirability to combine the country’s direct tax and indirect tax administrations, and the need for impact assessment and revenue forecasting, as examples of the organisation’s most important recommendations.

In an exclusive interview published in the May issue of International Tax Review, Parthasarathi (Partho) Shome said multinational groups were “exhausted” by India’s unpredictable tax system. However, he said his contact with senior administration officials while chairing the TARC convinced him they were committed to change.

P Chidambaram, the finance minister in the previous government, appointed Shome to chair the TARC in August 2013. The commission produced four reports between June 2014 and February this year, looking at subjects such as organisational structure, capacity building and information sharing between the different revenue agencies, impact assessment, the tax and taxpayer bases, and compliance.

Arun Jaitley, Chidambaram’s successor, said during his Budget speech on February 28 this year that the government was examining the TARC’s recommendations, with a view to implementing them in 2015/2016.

“The whole point of TARC was to benchmark India against the best practices globally,” said Shome, “and then look at the gaps and make recommendations from that point of view, with the objective of enhanced customer focus, as well as the assignment of human resources of the tax administration in a much more rational manner than prevails today.”

Help for taxpayers

Shome said Jaitley’s Budget gave “very good signals” to taxpayers, particularly relating to commitments to reduce corporate tax, introduce goods and services tax in 2016, and move forward with the TARC’s recommendations, but that implementation would be the test.

“The government should put in that extra effort, both in terms of time and staff, and intellectual resources, to implement what they have declared are their policies. That will be the proof of the pudding.”

Shome, an adviser to two former finance ministers, added it was important that India took part in the BEPS project.

“The important thing is to participate fully and openly in the discussions and deliberations so India’s views are recorded and recognised. Only then will India’s views be reflected in the final decisions.”

more across site & shared bottom lb ros

More from across our site

The OECD profile signals Brazil is no longer a jurisdiction where TP can be treated as a mechanical compliance exercise, one expert suggests, though another highlights “significant concerns”
Libya’s often-overlooked stamp duty can halt payments and freeze contracts, making this quiet tax a decisive hurdle for foreign investors to clear, writes Salaheddin El Busefi
Eugena Cerny shares hard-earned lessons from tax automation projects and explains how to navigate internal roadblocks and miscommunications
The Clifford Chance and Hyatt cases collectively confirm a fundamental principle of international tax law: permanent establishment is a concept based on physical and territorial presence
Australian government minister Andrew Leigh reflects on the fallout of the scandal three years on and looks ahead to regulatory changes
The US president’s threats expose how one superpower can subjugate other countries using tariffs as an economic weapon
The US president has softened his stance on tariffs over Greenland; in other news, a partner from Osborne Clarke has won a High Court appeal against the Solicitors Regulation Authority
Emmanuel Manda tells ITR about early morning boxing, working on Zambia’s only refinery, and what makes tax cool
Hany Elnaggar examines how AI is reshaping tax administration across the Gulf Cooperation Council, transforming the taxpayer experience from periodic reporting to continuous compliance
The APA resolution signals opportunities for multinationals and will pacify investor concerns, local experts told ITR
Gift this article