Generally, income taxes are not levied at the same time as the investment transaction in the share capital of any company because this amounts to the allotment of new shares. However, writes Anand Jaiswal of Infosys, this route of investment has been misused by many to dump huge funds in otherwise less valued companies for various reasons, including round-tripping and money laundering.
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While it’s great that the OECD is alive to multinationals’ fears of being caught in a compliance trap, the ‘common understanding’ illustrates a worrying lack of readiness
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