The soft tax target

The income-tax authorities gun for individual defaulters even as corporates devise ways to circumvent the system and escape lightly. Though the latter are responsible for much higher defaults, individual taxpayers bear the brunt of every increase in surcharge. Even indirect tax is eventually paid by them in the form of higher prices.

1.4lakh crore
rupees was the amount that the top 100 tax defaulters, most of which were corporates, owed to the exchequer till March 2009. In comparison, the income tax due from individuals (disputed/undisputed) is Rs 49,176 crore, according to budget 2010-11.

Escape routes for corporates

• They dispute the tax amount, take the matter to court and push for settlement at a lower amount.
• They show inadequate assets and involve the company in lengthy litigation.
• They route investments via tax havens like Mauritius.