The Ministry of Finance in month of June 2013 has introduced new rules for sending Income Tax officers to newly created overseas units similar to in the US and the UK.
As per the new selection criteria it is now mandatory for aspirants to get testimonials from bosses and write a note on how they can help maximise revenue from this front.
Earlier in Year 2011 ministry had announced creation of eight new Income Tax Overseas Units (ITOUs) as part of its multi-pronged strategy to tackle the nuisance of blackmoney. While two ITOUs are already there in Mauritius and Singapore, the eight new are all set to be fully operational at Indian missions in Cyprus, France, Germany, Netherlands, Japan, UAE, UK and USA. The new rules designed will be applicable for postings of officials to all the ten ITOUs.
An Overview of the New Rules designed by CBDT
• It had designated I-T officers to go as First Secretaries in these countries to maintain effective coordination and liaison between Indian tax authorities and the tax authorities of countries concerned.
• As per the revised selection criteria, the aspiring candidate, with a mandatory 15 years of service in the Indian Revenue Service (IRS), will be evaluated for ten marks each in getting recommendations from two serving officers who were immediate supervisory authority anytime during their service.
• The aspiring candidate should also have to write a 1000 word statement of purpose describing how his knowledge, experience and commitment will help in bolstering tax administration in the international context.
• The applicant, who will have to go through a final interview by a panel headed by Central Board of Direct Taxes (CBDT) chairperson, will be judged for a maximum of 40 marks for providing a brief bio-data of five of their outstanding work in the field of revenue administration.
• The aspiring I-T officials will also be rated on their investigation skills and expertise to handle international financial transactions, overall awareness in respect of financial scenario and methods used for tax avoidance.
• The other areas on which these senior officers will be rated include awareness of international financial protocols, issues pertaining to transfer pricing, working knowledge of tax treaties like the Double Taxation Avoidance Agreement (DTAA) and Tax Information Exchange Agreements (TIEAs) and other tax dispute resolution mechanisms like Advance Pricing Agreement (APAs) and Mutual Agreement Procedure (MAP).
• The posting of an officer in these ITOUs is for a period of three years.
About Central Board of Direct Taxes (CBDT)
The CBDT is a part of Department of Revenue in the Ministry of Finance which basically provides essential inputs for policy and planning of direct taxes in India,at the same time it is also responsible for administration of direct tax laws through the Income Tax Department.