The tax system is dynamically evolving with various nuances, and corporates must be on their toes to navigate them. Corporates are often integrally affected by the changes in the tax system, and they come up with unique and intelligent strategies to sustain themselves.
Regarding corporates' various hurdles concerning the tax system, Pankaj Vasani (Group CFO, Cube Highways InvIT) remarked, "No one likes change apart from a wet baby."
He listed several issues within the system, such as the vast number of compliances that have to be done by the corporates, which can be cumbersome and long-drawn litigations.
Poornima Subramanian, CFO, Reliance Nippon Life Insurance, commented that they have to streamline their business to stay clear from any objection or scrutiny.
She explained that come what may, some people have to complete their targets or claims and to meet those, the businesses end up getting claims. Those claims cannot be sorted at the departmental level; hence, long-overdrawn litigation is born out of the process.
She added that until the time system in India does not change, all the companies can do, is work hard to keep their business clean and streamlined.
Since the objections are many and the only strategy the corporates can use is to streamline their business and be very cautious about it, some guidance is required.
Talking about the same, Vivek Raju, CFO, ValueLabs, said that in countries such as the USA, businesses have guidelines about how to deal with grey areas to help them not fall into trouble.
He added that in India, such guidelines are not issued, and the authorities, in a way, wait for the business to fall into a trap. He went on to talk about the cluelessness of the judiciary in the matter.
Even though corporates are affected by the tax system and its changing, some equilibrium needs to be maintained between the companies and the department to function more efficiently.