Market leading insight for tax experts
View online issue

Press watch: India ‘kicks GAAR to 2016’

printer Mail

‘An advisory panel set up by Indian prime minister Manmohan Singh recommended on Saturday that a controversial set of tax avoidance laws be deferred until 2016 …

‘The general anti-avoidance rules (GAAR) were first announced in March, and have since been blamed for foreign fund managers pulling money out of the country. The rules are meant to crack down on money being routed through tax haven countries, particularly Mauritius, the tiny island nation through which, from 2000–2011, 42% of India’s $55bn foreign direct investment was routed. Previously, analysts and trade groups said India’s government failed to provide clarity on how these rules would operate in practice, panicking investors.

‘The postponement of GAAR has been seen by many as a first step for the new finance minister, P Chidambaram, to boost investment and improve sentiment in the faltering economy.’

Neil Munshi, Financial Times, 3 September 2012