Something About The Law

Prince Turki Al-Fasal, former Saudi Ambassador to the US, and member of the Royal Family, on why the rallying call for American energy independence is all but a fable; makes for a highly compelling read.

Article sourced from Foreign Policy:

Don’t be Crude.

….But this “energy independence” motto is political posturing at its worst — a concept that is unrealistic, misguided, and ultimately harmful to energy-producing and -consuming countries alike. And it is often deployed as little more than code for arguing that the United States has a dangerous reliance on my country of Saudi Arabia, which gets blamed for everything from global terrorism to high gasoline prices…..

The Fourth estate plays a vital role in the preservation of democracy and at times also helps in discovering truth and securing justice. This role of the media has been undisputed despite attempts by the judiciary to downplay and restrict the exercise of the right to free speech. In RK Anand’s case, the Court went at lengths to talk about ‘trial by media’ and the role of sting operations in our country and at the same time asked for some restrictions to be placed on the media when reporting Court room trials.

But in that case, the Court did not denounce sting operations all together. The judgment gives the impression that a sting is not objectionable if it is done in genuine public interest and carried out with care strictly following norms, thereby acknowledging that sting operations serve a public purpose to the society.

Keeping the above in light, the CBI a few days ago sought to chargesheet former Tehelka employee (now Cobrapost.com )Anirudh Bahal for the Cash- for- query scam in 2005. According to the prosecution, these media personnel played an important role in abetting the MPs to engage in corrupt practices and thus are to be charge sheeted. While the Court has exempted Mr. Bahal from a personal appearance, it has not quashed the chargesheet and asked to prosecution to respond to the same.

This move by the prosecution surely makes one rethink on the role of the media, particularly in sting operations. While the Supreme Court has not objected to this role, this latest move, if successful, will surely deter the media in engaging in sting operations and consequently hinder one of the modes of preserving a fair democracy and serving a public purpose to the society (in the Court’s words).

(Neha Pathakji, Lecturer in Taxation Laws at NALSAR, writes on the proposed Direct Tax Code, and its impact on the society.)

The nation is witnessing winds of change these days, especially in the age old Tax system. Just when a new indirect tax regime is round the corner in the form of GST(Goods and service tax), likely to be implemented in April 2010; the release of brand new Direct Tax Code has leased a fresh life in the Direct Tax system. The government seems to be determined to overhaul the existing tax fabric, both direct and indirect and make it simple, transparent and broad based. This is a strong message from the government of its commitment to realign the domestic taxing architect    with internationally accepted taxing principles and practises.

The new Direct Tax Code, if passed in the Parliament, will bid adieu to more than four decade old Income Tax Act, 1961. It will become a law only in 2011, so that as a nation we still have sufficient time to deliberate upon the new Code. The Income Tax Act, 1961; often considered to be one of the most complicated piece of legislature, has given rise to lots of confusion and complexities. Thankfully the new Code has aimed to remove the ambiguity by giving a go bye to redundant provisions, organising and grouping the provisions, ensures easy language for better understanding and transparency in the administration; thereby trying to promote better compliance and understanding of the statute. It has proposed to slash down rates, both for individuals as well as India Inc., replaced the concepts of ‘assessment year’ and ‘previous year’ with a single term ‘financial year’, scrapped the exemptions and distinction between long term capital gains and short term capital gains, raise deductions levels from current 1 lac to 3 lac. For individual tax payers, the Code proposes Rs.1.6 lac tax free income, income up to Rs.10 lac taxable at the rate of 10%, up to Rs.25 lac at 20% and at 30% above Rs. 25 lac whereas corporate taxes are down from 30% to 25%.

Taking a bird’s eye view, the new Code seems to promise the aspiring individuals and middle class and at the same time woo the corporate world. While the raising of deductions from current Rs.1 lac to 3 lac will stimulate savings, interests on savings have been made taxable. However, the Code will prove to be a mix bag for salaried class. In a major departure from current position, the draft Direct Tax Code envisages EET regime i.e. exempt-exempt-tax from exempt-exempt-exempt. In simple words it means that the Code proposes to introduce exemption on investment, exemption on returns but tax on withdrawal. This has raised concerns of the salaried class and small investors. EET will have a favourable impact on the New Pension Scheme; it makes withdrawals from the PPF, GPF, RPF and EPF taxable, hitting the most where it hurts. The idea mooted is to save on tax when in employment and pay tax at retirement. But it is the retirement time when any taxpayer would least want to part with his lifelong earnings. The ones who have already opted for annuity plans and pension funds from insurance companies are sceptic. This may require amends in the investment portfolio of the small investors. Also in a major jerk to the borrowers of housing loans, the exemptions on housing loans find no mention. It is suggested that there should be some provision for standard deductions for the salaried class.

Agricultural income still remains out of the purview of tax. The business losses will be allowed to be carried forward indefinitely which is again good news for the business sector. The capital gains tax and wealth tax are also imbibed in the same statute, thereby integrating different direct taxes like income tax, corporate tax, fringe benefit tax, wealth tax and capital gains tax under one umbrella.

The new Code promises the taxpayers happy days ahead once the proposal becomes law. However, the government needs to invite suggestions and take opinions and feedback from the financial experts, chartered accountants, jurists, the academia, experts and all the stakeholders before giving a final shape to the new tax system.

The Foreign Ministry of the Government of Afghanistan has issued a statement, calling on domestic and foreign media to avoid reporting any poll-related violence in the country on the day of the elections. The statement reads;

All domestic and international media agencies are requested to refrain from broadcasting any incident of violence during the election process from 6am to 8pm on 20 August.

The media have also been asked to stay away from any scene of ‘terrorist incident’ so as to avoid ‘destruction of initial evidence for investigation’. The statement issued by the Government comes in the light of repeated threats by the Taliban to disrupt the polls, some of which have been followed by sporadic violence in Kabul and other parts of the country.

From the Government’s perspective, the move is an attempt to control the ‘negative influence’ of the media (as stated by President Karzai’s spokesperson) to prevent exaggeration of election-day violence, and consequently, fear-mongering among Afghan citizens. However, media entities and rights organizations have been unanimous in condemning the statement; the Government’s call has been cited as an attempt to curtail press freedom, and prevent citizens from knowing about real, and potent security threats on the day of election.

The announcement is but one of the many intriguing aspects of the election process in Afghanistan, which will culminate in the voting session tomorrow. The international community, particularly the US, is extremely concerned about the state of affairs in the country, and the growing influence of the Taliban. Thursday’s election is widely tipped to be in favour of the incumbent Hamid Karzai, whose relations with the US have been favourable, though pocked with inconsistencies. (Karzai, for his part, has appealed to the broad spectrum of ethnic groups in Afghan provinces to ensure his re-election.)

Many countries which hold strategic interest in their relations with Afghanistan, including India and the US, will sleep better if Karzai’s Government is re-elected to another term. While there has been growing discontent against the presence of international troops on Afghan soil and the inconsistent ‘drone attacks’ that have claimed many a civilian’s life, there can be no better, immediate solution to stabilized nation-building than to have back Karzai in power. Again, as most countries acknowledge, this is not because of an unflinching trust in the incumbent’s capabilities, but because of the sheer control he holds over the provinces, in sharp contrast to his poll opponents.

The Taliban threat is still high, and the events in Pakistan bear testimony to its growing potential (notwithstanding reports of Beitullah Mesud’s death) in the region. A nascent Government will be immediately pulled into chaos, especially if it is in the nature of a coalition, allowing the Taliban to regain its footing in key areas of Afghanistan. That the West is keen to see Karzai back in power is clearly evident from the conspicuous absence of official international comment on the misgivings during the campaigning and poll process.

Recently, the BBC claimed to have unearthed a ‘Votes-for-Money’ scandal, where a huge number of voting cards could be bought for a considerable payment. The Afghan Independent Election Commission that oversees the poll has also been accused of not doing enough to prevent abuses. Despite these shortcomings, Western officials maintain that it is better to have a problem-riddled election than not having one at all (Mark Sedwill – British Ambassador to Afghanistan). Add to this, the constant threats from the Taliban to chop off the ‘inked-finger’ of any Afghani who goes to the voting booth.

It is a stand, not many nations can disagree with, considering Afghanistan’s role in any attempt to curb widespread terrorism. Therefore, the move to keep media agencies away from poll-related violence, in as much as it goes against established democratic norms, is likely to be met with little or no resistance by key foreign players.

(This post forms the first in a series of posts on Foreign Policy, which will focus on contemporary issues of international concern)

The stance of the Board of Cricket Control of India (BCCI) as regards the ‘whereabouts’ clause of the WADA just doesn’t make sense. According to latest reports, the players and the BCCI have stated that the said clause violates their right to privacy as guaranteed under the Indian Constitution and Article 19 (1)(d) that guarantees the right to every person to move freely within India.

These rights are guaranteed and there’s no denying that. But these rights are guaranteed by the STATE and not any private organization. In Zee Telefilms v. Union of India, the Supreme Court clearly held that the BCCI is not a state under Article 12 of the Constitution. What then comes out of this judgment is that the BCCI cannot say that they would be violating the rights of its players by this clause because they are not an ‘authority’ under the Constitution that guarantees them.

Rights are to be guaranteed by the State and not any private body. So when a private body like the BCCI says that it is obliged to provide for these rights under the Constitution, the statement doesn’t make sense. Are we then looking at an admission that the BCCI is a ‘state’ under the Constitution ?