give your opinion on the following statements and suggest in three points to the person aspiring to avoid tax.'hey I don't want to pay tax rather I show less income and save interest if I deposit in a bank'.
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Answer:
The puny two-wheeler was called Spitfire. It was 1988 and employees of my husband’s company were being offered this 50cc bike at a concessional rate.
One had to run with it for a while, and at some point the engine would come alive and one jumped onto the seat. But what was a tea company like Brooke Bond doing with 50cc bikes? The answer to that question holds many stories about the stupid decisions that businesses and individuals in India routinely take with a single objective—tax saving.
Brooke Bond was then a hugely profitable business. Those were the days of the MRTP Act that restricted expansion of business. It was also not easy to return the profits to the foreign owners thanks to FERA. So what did they do with the money they were making? They bought over a sick motorcycle business called Mysore Scooters. They set up a paper plant in Bilaspur. They bought a meat processing unit at Aurangabad. None of these made any strategic sense to their core business of making blended tea. But they saved taxes.