IIIPI report suggests taxation reforms to streamline insolvency resolution under IBC. Key recommendations include tax neutrality for resolution plans.
New Delhi, Aug 26 (PTI) A comprehensive set of reforms across taxation, insolvency and procedural frameworks can help streamline the insolvency resolution process, according to a report prepared by IIIPI.
The report by the study group of the Indian Institute of Insolvency Professionals of ICAI has suggested aligning the Income Tax Act with the Insolvency and Bankruptcy Code (IBC) by granting tax-neutral treatment to resolution plans and exempting debt waivers from tax liabilities.
Another suggestion is to ensure clarity on treatment of brought-forward losses and minimum alternate tax…