Foreign investors, often caught in a discordant tax dispute duet, yearn for a settlement scheme to resolve past tax disputes arising from differential treaty interpretations. The recent court decision, coupled with the ambiguity surrounding the ‘Most Favoured Nation’ clause, adds an extra layer of complexity. The call for a settlement window without interest or penalties is not just a financial request but a plea for certainty and resolution. It’s time to transform the tax dispute saga into a harmonious concerto that resonates with investor confidence.
The finale of tax amendments expected leads us to the desire for ease of administration and reduced litigations. Despite initiatives to clear small disputes, the backlog of appeals remains a lingering alley of uncertainty. The business community wishes for a streamlined process, complete with timelines for appeal disposal, akin to those for the Dispute Resolution Panel. A faster resolution would be the grand crescendo that brings relief to both taxpayers and the tax administration, transforming the tax landscape into a harmonious melody.
There also seems to be a continual expectation from taxpayers revolving around a streamlined capital gains tax regime and a clear understanding of tax implications linked to repatriation, with a specific focus on buybacks.
Nonetheless, considering the interim nature of this budget, the strategic emphasis remains judiciously oriented towards initiatives that bolster Make in India and enhance the facilitation of business operations. As the curtains rise on Budget 2024, the audience – comprising investors, businesses, and the common man – awaits the unveiling of India’s next economic act. Will the Budget 2024 resonate with the demands of the business community? The stage is set, let the transformative narrative unfold.
(The author is partner, Deloitte Haskins & Sells LLP)
