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HC NOTICE to Centre,
CBDT on action against MNCs
New Delhi
January 2000
The Delhi high court has asked the Union government and the Central Board of Direct Taxes to explain why action should not be initiated against some MNCs which had been allegedly evading taxes worth Rs.400 crore due on salaries of their employees paid abroad.
The PIL filed by the Azadi Bachao Andolan, a non-governmental organisation, alleged the "deliberate inaction" on the part of the respondents had been resulting in a "loss" of thousands of crores of rupees to the exchequer.
ABA counsel Prashant Bhushan said instead of taking action against the defaulters, the tax department has transferred two officers who had "ordered" a survey of the defaulting companies. He said the survey was conducted after the department received an information in 1994 that many MNCs were not fully declaring salaries paid to their expatriate employees.