The Income Tax (I-T) department today said there is no great ambiguity in international tax laws and the government wants to have more transparency in deals.
"There are issues...debatable issues, but there is no great ambiguity in international tax laws," Director General of Income Tax, International Taxation, RN Dash, said on the sidelines of a CII event here.
"We should all address it with fair judiciousness. The government wants to have more transparency in deals," he said.
Meanwhile, the government is in the process of establishing treaty protocols with some tax havens to curb the menace of black money.
"We are in the process of establishing treaty protocols with some of the tax havens. Treaty conditions are being revived to exchange tax information," he said.
Having already established treaties with Singapore and Mauritius, the government is in the process of concluding such pacts with eight other countries, Dash said.
The I-T department will adopt international best practices, he said.
"I promise you (the tax professionals) that the I-T department will adopt international best practises," Dash said.
On M&As, he said, "They are allied to transfer pricing. Before an M&A is done, the issue of transfer pricing has to be thrashed out first.
"Initial success of tax authorities is rather evident in the Vodafone case. There are issues all of us should go through very carefully," he said.
Stressing upon the magnitude of tax issues in cross-border transactions, PricewaterhouseCoopers India Executive Director Ketan Dalal said that 70% of global transfer pricing litigations emanated from India, which is a matter of concern.
