MNCs who complain about Indian tax structure, here’s what RBI’s Rajan has to say to you

RBI Governor Raghuram Rajan hit back at MNCs and criticised them for bad corporate behaviour.

MNCs have often complained about excessive taxation. To this, Rajan said companies weave structures to avoid billions in taxes.

"It is also true that MNCs across the world tend to find tax avoidance and sometimes tax evasion as appropriate techniques. Some corporations find that all their intellectual property is manufactured in Cayman Islands. I haven't seen a lot of smart scientists sitting in Cayman Islands,'' said Rajan.

Companies like Vodafone, Shell, etc complain about India's retrospective taxation and claims the tax department makes.

"We have to create tens of millions.. crores of jobs every year. We need to create those jobs because a good job is the best form of inclusion.
There is tremendous pressure on the political system, and on the regulatory system to deliver those jobs. This is where democracy works through the democratic process coming out as a move towards easing way to growth and easing the way towards making it easier to open businesses,” said Rajan.