India Signals Tax-Avoidance Clampdown Won’t Be Retrospective
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India proposed that a clampdown on tax avoidance due in 2013 won’t apply retrospectively or to cases below a certain monetary threshold, seeking to assuage concern that the plan will deter foreign investment.
The draft guidelines released by the finance ministry in New Delhi late yesterday would also exempt foreign institutional investors if they refrain from routing money to India via tax shelters. The indicative rules are for discussion and feedback and haven’t been seen by Prime Minister Manmohan Singh, who has final approval, the government said today.