All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Chidambaram confirms Indian GAAR delay until 2016

chidambaram.jpg

Indian Finance Minister, P Chidambaram, confirmed today that the major recommendations of the expert general anti-avoidance rule (GAAR) committee will be accepted and that GAAR implementation will be deferred by two years until 2016.

Foreign investors are cheering the news, which sees the legislative change pushed back from its original implementation date of April 1 2014.

Most of the other recommendations made by the Parthasarathi Shome-led expert committee were also accepted, including requirements regarding the make-up of the GAAR Approving Panel, the transaction value threshold for GAAR to be invoked, and a softening of the GAAR application criteria so that obtaining a tax benefit must be the main purpose for an arrangement, rather than “the main purpose or one of the main purposes” as previously worded.

“The modifications we have done are fair, non-discriminatory, just and strike a balance between interest of revenue and interest of investors,” said Chidambaram.

“The decisions [contained in today’s announcement regarding GAAR modifications] have by and large addressed the concerns that were expressed by investors,” he added. “Most of the apprehensions I think have been removed now.”

more across site & bottom lb ros

More from across our site

The companies have criticised proposals for the gig economy, while the UK and EU VAT gaps have fallen in percentage terms, and ITR speaks to a European Commission adviser about its VAT reforms.
Corporations risk creating administrative obstacles if the pillar two rule is implemented too soon, sources say.
Important dates for the Women in Business Law Awards 2023
The Italian government published plans to levy capital gains tax on cryptocurrency transactions, while Brazil and the UK signed a new tax treaty.
Multinational companies fear the scrutiny of aggressive tax audits may be overstepping the mark on transfer pricing methodology.
Standardisation and outsourcing are two possible solutions amid increasing regulations and scrutiny on transfer pricing, say sources.
Inaugural awards announces winners
The UN’s decision to seek a leadership role in global tax policy could be a crucial turning point but won’t be the end of the OECD, say tax experts.
The UN may be set to assume a global role in tax policy that would rival the OECD, while automakers lobby the US to change its tax rules on Chinese materials.
Companies including Valentino and EveryMatrix say the early adoption of EU public CbCR rules could boost transparency of local and foreign MNEs, despite the short notice.