Modi slams CAs' poor record on discipline.
PM Modi indicated his unhappiness with the way disciplinary proceedings were undertaken against chartered accountants, pointing out that just around 25 auditors had faced action in over a decade and around 1,400 cases were pending.Over the years, the Institute of Chartered Accountants of India, the self-regulation agency for CAs, has faced severe criticism over the issue, prompting the government to look at other options, but never has any PM spoken out publicly against the poor track record of the agency .
Modi's comments came as he suggested that auditors should be more careful with company accounts as pensioners and widows depended on balance sheets signed by them to decide on parking their lifetime savings in mutual funds and shares.
“A CA's signature is more power than that of the PM Your signature carries immense faith, please do not break that trust that is placed in you,“ the PM said.
The PM also called for creating four big Indian accounting firms that are counted among the world's `Big-8'. Referring to the `Big 4' -a term used to describe the world's four largest audit firms -the PM said there are so many accounting firms in India but none had managed to find a place among the top global players. “By 2022, let us have a Big 8, where 4 firms are Indian,“ he said in his address at the ICAI foundation day .Jul 02 2017 .
Tax Reform Pitched As 2nd Surgical Strike On Black Money
Prime Minister Narendra Modi disclosed on Saturday that the registration of over 1lakh companies which had allegedly engaged in suspicious transactions post-demonetisation had been scrapped as he sought to cast the goods and services tax (GST) as his second strike against black money and corruption.“Forty-eight hours before the launch of GST, we, by one stroke of pen, cancelled the registration of 1 lakh companies which, based on the mining of deposits made in banks after November 8, were found to ha ve engaged in serious irregularities,“ said Modi, adding that 2 lakh other companies are under the scanner. He said the government has identified 37,000 shell companies which engage in money laundering and help those with black money .
Modi's disclosure at a func tion organised to mark the foundation day of the Institute of Chartered Accountants in India came amid clear indications that the government is moving swiftly to turn the switch to GST and its successful implementation as part of his campaign against black money and corruption. The decision to de-register one lakh compa nies in one stroke is reflective of the government's intent, as well as a pointer to the will power of the political class. Such decisions are not taken on the basis of political calculations, they can be taken only by those who love the country ,“ said the PM.
In his address to chartered accountants, he asked them to help with the successful implementation of GST in order to curb tax evasion. “I invite you to join the festival of honesty ,“ Modi said, adding that while implementing the Swachh Bharat Abhiyan, his government was also seeking to clean the economy by acting tough with those who have looted the country .
The focus on corruption and black money reinforced the indication about his plan to expand GST into an instrument for the campaign against corruption and poverty . Just like his speech in the Central Hall of Parliament on Friday to mark the launch of GST, the PM said the measure will help curb tax evasion and generate resources to help the poor and needy.
The nearly three-hour long function was telecast live by the national broadcaster and chief ministers of BJP-ruled states and Union ministers joined chartered accountants in state capitals to listen to his speech, an indication of the plan to ramp up pro-GST advocacy .
The government also took a tough line on traders opposing GST, with finance minister Arun Jatiley saying that a “section has started treating tax evasion as their birth right“. Jaitley said: “This government will not succumb to pressure from those who have incomes of Rs 50 crore or more but would not pay taxes.“