New Delhi, March 4: Adopting a new approach in its anti-tax avoidance measures, the government has decided to put the onus of proving charges of transfer pricing on the assessing officer. Companies charged with such irregularity will not be required to furnish proof to defend themselves, according to revenue secretary S Narayanan.There was scope for tax evasion in deals between two or more enterprises belonging to the same multinational group. Multinationals carrying on business in the country can control profits derived here "by manipulating the prices charged and paid in intra-group transactions," he explained.
However, unlike other tax compliance measures, in this case, the onus of proving that such manipulation was taking place would rest with the authorities making the charges.
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