Tax planning by Bhoruka Engineering (Bhoruka) to avoid capital gains tax on a share sale which effectively transferred immoveable property between two entities has been deemed acceptable by the Karanataka High Court. Advisers say there is nothing to stop other taxpayers taking advantage.
Denmark's largest listed company, Novo Nordisk, has been hit with transfer pricing adjustments of DKK 22 billion ($3.95 billion) by the Danish tax authority (SKAT) resulting in an increased tax bill of DKK 5.5 billion.
UK telecommunications group Vodafone has defended its position in its dispute with the Indian tax authorities and in the much scrutinised settlement with HM Revenue & Customs (HMRC) in 2010 in its sustainability report 2012/13. The report also includes an overview of the total tax contribution of the group on a country-by-country basis for the first time.
The Israeli tax authorities are claiming that medical technology firm Medinol owes between $150 and $225 million in capital gains tax on a $750 million compensation payout it received from US company Boston Scientific in 2005.
Domestic and foreign companies acquiring Brazilian entities through the incorporation, as opposed to the sale, of shares should pay no capital gains tax, according to the country’s Administrative Council of Tax Appeals (Conselho Administrativo de Recursos Fiscais).
