The Parthasarathi Shome panel, looking into the taxation issues relating to General Anti-Avoidance Rules , GAAR is likely to submit its final report to Finance Minister P Chidambaram tomorrow.

Prime Minister Manmohan Singh in July had set up a committee under tax expert Parthasarthi Shome to address concerns of foreign and domestic investors on GAAR. The committee had already submitted its draft report to the finance Minister on 1st of this month. The government had later expanded the scope of the expert committee on GAAR to include concerns of all non-resident tax payers.

AIR correspondent reports that the committee in its draft report had recommended postponement of the controversial tax provision by three years and abolition of capital gains tax on transfer of securities.

In order to address the concerns of Mauritius-based investors, the Shome panel had suggested that the provisions of the GAAR should not be invoked to examine the genuineness of the residency of an entity set up in Mauritius.

In view of the concerns expressed by investors, the government had already postponed implementation of GAAR by a year to April, 2013. The proposal was introduced in Budget for 2012-13 by the then Finance Minister Pranab Mukherjee.