Sulking Taxman Refuses to Go On Raids

Tax Officials On A Month-Long Strike Against Outsourcing

AN OUTSOURCING contract to Infosys, Indias second-largest software company, has resulted in an unexpected reprieve for those with income to hide from the taxman.
Irked by the contract, under which Infosys is processing tax returns filed online, and rattled by the prospect of more outsourcing, officials of the investigation wing of the income-tax department, the arm of the tax administration that conducts raids, have refused to step out of their offices for at least a month. As a result, officials have not been able to conduct the socalled search and seizure operations, officialese for raids, during this period, even though many of these were in the works.
The union representing employees and officers has adopted this unusual mode of protest and said they would refuse to budge till the Central Board of Direct Taxes, or CBDT,the apex body for tax administration, meets their demands.
Since raids require officials to leave their offices and visit the taxpayers premises, such plans have had to be shelved until the agitation is called off.
A senior officer said raids have had to be postponed, reducing their effectiveness. We have not been able to conduct raids in even those cases where investigations are already on. The success of raids largely depends on the timing, and this element has been badly affected by the agitation.
CBDT chairman SSN Moorthy told ET that the board had given employees whatever they wanted.

Economic Times, New Delhi, 26-08-2010