Parthasarathi Shome to head Tax Administration Reforms Commission

NEW DELHI: Parthasarathi Shome, advisor to Finance Minister P Chidambaram, is set to head the Tax Administration Reforms Commission ( TARC), which has been tasked to review the tax rules enforced by officials. The idea is to end discretionary practices that investors, especially foreign investors, have been wary about.

A formal announcement will be made once the Cabinet clears the terms of reference of the Commission, said a senior government official.

Finance Minister P Chidambaram announced the setting up of TARC, which has been tasked to strengthen the country's tax administration, in this year's Budget. The plan is to have a five-to-seven-member Commission that will also include outside experts. A decision also has to be taken on the tenure of the Commission. As advisor to FM, Shome's term is co-terminus with the period of office of the minister.

Shome, an economist and tax expert of international repute, has already been named head of a forum to interact with industry groups on tax related issues and disputes, signaling the government's intention to dispel fears of aggressive taxation.