Five years after the Panama papers, the latest exposé only reveals the legislative limits of preventing tax dodging across the world. The Panama papers and Paradise papers had marked a significant shift in the public perception over notions of the rich paying their fair share of taxes. Reportedly, 16 out of 88 countries identified in the Panama papers undertook at least one substantive reform by 2019. An important debate that emerges from these leaks, which is more relevant for India, is the distinction between tax avoidance and tax evasion. While such inquiries can assuage public resentment, to truly reform the existing tax system socially unacceptable tax avoidance must be made impermissible in law.

Source: Indian Express October 10, 2021 21:40 UTC