India Proposes Tax On Foreign Mergers

Law360, New York (March 16, 2012, 5:49 PM EDT) -- Indian lawmakers on Friday proposed a new tax on foreign mergers, a move experts said could further curb investor enthusiasm already dampened by regulatory hassles, budget woes and concern over an economic slowdown.

Under the proposal, offshore deals for Indian companies would no longer be tax-exempt. The proposal would be retroactive to 1962 and could raise billions of dollars for the Indian government, which faces a growing deficit.

The move is aimed at British telecom giant Vodafone Group PLC, which in January won a supreme court...
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