BAR: The Unfulfilled Promise Of AAR?

Introduction:

Certainty in tax system is an overarching factor which influences decisions whether to proceed with indulging in trade with a country or not. Certainty curtails discretion vested in taxpayers as well as Revenue Authorities. This assumes utmost relevance since there is often a lag between the time a taxpayer being a non-resident, ascribes to certain tax positions and the assessment of such positions by the Revenue Authorities. In this context, certainty bestows confidence in decision making and is in that view of the matter, key for operation of a system where resources are not unnecessarily required to be channelised to deal with unwarranted complexities. Certainty, therefore, is instrumental in curtailing the dilemma that a business may encounter, by directing it to pursue the path that seems to offer the required benefit, comfortably and suitably. Uncertainty, in a tax system, may be a result of the provisions in the statue, coupled with overlapping