Suggested Model Bill for "The Corporate Income Tax Code,2018"

A concept paper on the simplification of corporate income-tax  is given here
https://unionbudgetexpectations.blogspot.in/2018/01/simplify-corporate-income-tax-concept.html
A model bill for simplified corporate income-tax is given below

The Corporate Income Tax Code,2018
A Bill
To make provisions for hassle free taxation of income of  companies at moderate rates by converging taxable income  to pre-tax profit in audited profit and loss account determined in  accordance with Accounting Standards notified under the Companies Act,2013 thereby eliminating the taxation of artificial income and to do away with multifarious exemptions which become a source  of conflict and litigation
Be it enacted in the Parliament in the ....... year of the Republic of India as follows

CHAPTER I
1.Short title, extent, commencement and applicability
(1)This Act may be called the Corporate Income Tax Code,2018
(2)It extends to the whole of India
(3)It shall come into force with effect from the financial year 2021-22
(4)It shall apply to taxation of income of every company except the following:
(a)a company to which the tonnage tax scheme of the Income Tax Act,1961 applies
(b)a company whose entire income is derived from agriculture which is exempted under clause (1) of section 10 of the Income-Tax ACT,1961
(5)On and from the coming into force of this Act, save as otherwise provided in this Act, the provisions of the Income-Tax Act,1961 shall not apply to any company to which this Act applies

2.Definitions
In this Act, unless the context otherwise requires----
(a)    “Accounting Standards” means the Accounting Standards notified under section 129 of the Companies Act,2013
(b)   “Auditor” shall mean the auditor/(s) appointed under the Companies Act,2013 who has/have issued the audit report on the accounts of the company under section 143 of the said Act
(c)    “Financial Year” shall have the same meaning as assigned to it in section 2(41) .of the Companies Act,2013
(d)   “Pre-tax profit” means “Profit before Tax” as per Item No.IX in statement of profit and loss of the company prepared in accordance with Part II  of Schedule III to the Companies Act,2013
(e)    “National Financial Reporting Authority”  means the Authority constituted under section 132(1) of the Companies Act,2013
(f)     “Tonnage Tax Scheme” shall have the same meaning as assigned to it in clause(m) of section 115V of the Income-Tax Act,1961

CHAPTER II
3.Charge of tax
(1)There shall be charged to tax on every company for every financial year commencing on or after 1st day of April 2021, subject to the provisions of this Act, a tax in respect of its “adjusted pre-tax profit” at the rate of 20%.
(2)“Adjusted pre-tax profit” shall mean the pre-tax profit as adjusted by:
(a)Qualifications or adverse remarks made by the auditor in his audit report under section 143 of the Companies Act,2013 where the National Financial Reporting Authority so directs
(b)Adjustments directed by the National Financial Reporting Authority where it is of the opinion that accounts have not been prepared in conformity with the Accounting Standards subject to the provisions of  section 5 of this Act
(c)Adjustments in respect of related party transactions in accordance with Chapter X of the Income-Tax Act,1961 
(d)Loss of preceding financial years carried forward and set-off in accordance with sub-section (3)
(3)Where the “adjusted pre-tax profit” for any financial year as determined in sub-section(2) is a negative figure or loss, no tax shall be  chargeable in terms of sub-section (1) and the same shall be  carried forward and set-off against pre-tax profit of succeeding financial years.

4.Obligation to comply with Accounting Standards
(1)Every company shall comply with accounting standards except where deviation from accounting standards is justified in terms of  true and fair override in terms of section 5.
(2) The company should implement the prescribed accounting standards in letter and spirit in the preparation of financial statements taking into consideration the interest of all stakeholders and should also ensure that the annual audit is conducted by an independent, competent and qualified auditor

5.True and Fair Override
Where in the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard has been followed, the fact shall be disclosed in the financial statements, together with the management’s explanation as to why it believes such alternative treatment is more representative of the true and fair view of the underlying business transaction.

6.Interpretation of Accounting Standards
(1)The Accounting Standards shall be interpreted in accordance with the Opinions issued by the Expert Advisory Committee of the Institute of Chartered Accountants of India
(2)The Opinions issued by the Expert Advisory Committee shall be deemed to be Advanced Rulings

7.Power of the National Financial Reporting Authority to direct adjustments to the pre-tax profit
The National Financial Reporting Authority may, after giving an opportunity of being heard to the company and its auditor, determine adjustments to pre-tax net profit in respect of:
(i)auditor’s qualifications and adverse remarks in his audit report; and
(ii)where company has failed to comply with the applicable accounting standards

8.Appeals
(1)An appeal shall lie to the Supreme Court on substantial questions of law arising out of the order of the National Financial Reporting Authority
(2)The appeal shall be filed within 60 days from the date of receipt of certified copy of the order of the National Financial Reporting Authority


9.Applicability of the provisions of Income Tax Act,1961
The following provisions of the Income-Tax Act,1961 shall apply to a company to which this Act applies:
(i)Chapter XIVB Special Procedure for Assessment of Search cases
(ii)Chapter XVII Collection and Recovery of Tax
(iii)Chapter XIX Refunds
(iv)Chapter XXI Penalties Imposable
(v)Chapter XXII Offences and Prosecutions 

 The above bill may be presented as a separate money bill or as part of the Finance Bill,2018

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