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India Plans Wider Taxes on Foreign Mergers
India signaled it wants to levy a heavy retroactive tax on some international mergers, the latest discouraging development for foreign companies in one of the world's largest emerging markets. Taxand India provides comment on the proposed taxes on foreign mergers as announced in the budget.
"It is utter nonsense, in my view," said Mukesh Butani, chairman of Taxand India. He said the move "doesn't augur well for foreign direct investment. It's hard to explain to an American or European lawyer that India can amend a law 50 years later."
First published in the WSJ Online 17 March 2012