The annoying part about the way our tax system goes, is how so many forms of guidelines and ruling, minutes of dialogues and administrative concessions look, taste and feel legally binding, but the authorities insist they ain’t. So, the taxpayers end up tight-roping their way through their compliance process with a legal smelling safety net assuring them it’s not gonna rip if they fall on it. Most times though, the taxpayer ends up breaking some limbs and bleeding on the ground. (Sorry, am in a morbid mood.)
Take for instance, an administrative concession given by the Royal Customs & Excise Department in their guidelines on defining “management services” for applicability for service tax. Within that guideline, which was issued in 1998, a concession reads:-
In view of the current economic situation of the country and to encourage domestic investments and savings, the Customs authorities have administratively excluded the following financial services from the ambit of service tax:
- purchases and sales of shares, warrants, bonds, etc.
- savings in unit trusts, banks, trust funds.
Now, one would assume that if the authorities have in mind to revoke the concession, at least a tiny squeek of a notice to those who rely on such freebies would help, won’tcha think? Or are we expected to kill some trees writing in to verify? Okay, maybe I’m being whiny here. But have a look at the activities listed there for a sec and think a little. What kinda company would be providing those services? Would there be many such companies? Would they be regulated and possibly even listed? Would listed companies be okay about showing their penalized asses in public because the authorities changed their minds silently?!
The individual: Don’t give a shit.
The CEO: What the hell?!
The tax sucker personnel, feverishly trying to save his job ring up Customs: C’mon… Pick up, damn it!
