A case study is a comprehensive and in-depth examination of a particular subject, often within its real-life context. It serves as a methodological tool to explore, analyze, and understand complex issues or phenomena, ranging from individual experiences to organizational challenges. Typically employed in various academic disciplines, business settings, and scientific research, a case study involves an extensive investigation that aims to provide a detailed account of the subject under scrutiny. By delving into the intricate details of a specific case, researchers can uncover valuable insights, draw conclusions, and offer practical solutions. This method offers a holistic approach, allowing for a nuanced understanding of the multifaceted factors influencing the subject, making it an invaluable tool for gaining knowledge and informing decision-making processes.
Q11. Dr X is a leading medical practitioner in a city. He has set up a charitable trust through which he plans to establish a super-speciality hospital in the city to cater to the medical needs of all sections of the society. Incidentally, that part of the State had been neglected over the years. The proposed hospital would be a boon for the region.
You are heading the tax investigation agency of that region. During an inspection of the doctor’s clinic, your officers have found some major irregularities. A few of them are substantial which had resulted in considerable withholding of tax that should be paid by him now. The doctor is cooperative. He undertakes to pay the tax immediately.
However, there are certain other deficiencies in his tax compliance which are purely technical in nature. If these technical defaults are pursued by the agency, considerable time and energy of the doctor will be diverted to issues which are not so serious, urgent or even helpful to the tax collection process. Further, in all probability, it will hamper the prospects of the hospital coming up.
There are two options before you:
- Taking a broader view, ensure substantial tax compliance and ignore defaults that are merely technical in nature.
- Pursue the matter strictly and proceed on all fronts, whether substantial or merely technical.
As the head of the tax agency, which course of action will you opt and why? (250 Words, 20 Marks)
Tag: Case Study
Decoding the Question:
- In the Introduction, try to write a case summary.
- In Body,
- Mention the stakeholders involved.
- Discuss all possible options.
- Discuss your course of action.
- In Conclusion, try to write your opinion (give example if possible)
Answer:
Case Summary:
Dr. X, a medical practitioner. Through his charitable trust he is planning to establish a super specialty hospital in a backward region of the state.
I am heading the tax investigation agency of that region, and found some major irregularities in his clinic, a few of them substantial.
There are certain other deficiencies in his tax compliance and if these defaults are pursued, considerable time and energy of the doctor will be diverted to issues and will probably hamper the prospects of the hospital coming up.
Stakeholders involved in the case:
- Dr. X, a leading medical practitioner.
- I am the head of a tax investigation agency.
- Other officers of the department.
Options available before me:
Taking a broader view, ensure substantial tax compliance and ignore defaults that are merely technical:
- UTILITARIAN PRINCIPLE lens when applied to the above case, technical issues can be easily ignored as it will lead to the largest balance of benefits over harm.
- As Mahabharata preaches – “Saving a life that is in jeopardy is the origin of dharma”, thus this would be in-line with dharma to save the lives.
- X can focus more on his noble profession of treating patients rather than wasting his time and energy in the complex procedures of tax filings.
- Social capital of tax agencies may increase resulting in more tax compliance.
- X will remain motivated and will have a demonstration effect on others.
- Tax agencies will not have a reputation of harassing citizens.
Pursue the matter strictly and proceed on all fronts, whether substantial or merely technical:
- I would take a broad view and be compassionate on technical defaults which are non-consequential either for tax compliance or for revenue to the exchequer after knowing about the good intention of the doctor to establish a super specialty hospital in the city for all the sections, especially the poor and needy people.
- This option would optimize tax collection on one hand and augment public welfare if a super specialty hospital is established in the city on the other.
- Nevertheless, a broad view should be taken with care and caution about nondiscrimination and equality before the law on one hand and promoting Good Samaritan acts on the other. Generally, these two goals are seen separately and the second, good acts do not absolve a citizen from a crime or non-compliance of the law.
The principles of jurisprudence, provide for leniency where the culprit has good intentions and a good track record of social and community work including philanthropy as seen in the US court’s judgment about iconic Rajat Gupta’s failures in insider trading. This principle can be applied to good governance with discretion and caution in the larger interest of the national and public.
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