MNCs in India turn tax evaders

New Delhi, May 19 (UNI) Multinational companies (MNcs) operating in India are not paying up taxes.

According to the government, cases of tax evasion by MNCs are on the rise and as on March 31, MNCs owe the country Rs 2,500 crore in taxes.

Of the 1,915 MNCs assessed for tax during 2005-6, tax evasion was noticed in respect of 411 companies, Minister of State for Finance S S Palanimanickam told the Lok Sabha today.

Direct taxes outstanding against MNCs at the end of the first quarter are in excess of Rs 2,500 crore.

The actual amount owed by the MNCs will be much higher when indirect taxes (no figures are available with the government) are also included, Mr Palanimanickam said during Question Hour.

As against 326 cases of tax evasion in 2004-5, the number in 2005-6 was 411, he said.

The government has taken appropriate measures including scrutiny of tax returns every year for checking tax evasion by MNCs, he added.

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