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Several MNCs under IT scanner for deals done via Mauritius Cos

Several MNCs under IT scanner for deals done via Mauritius Cos

After private equity firms and fund houses, the taxman has raised the spectre of capital gains and judicial General Anti Avoidance Rule (GAAR) over several multinationals that had invested in India or sold part of their assets through Mauritius entities between 2013 and 2016.

The tax department has reopened assessments of many MNCs over investments made in India and returns sent back to holding companies after a sale, people with direct knowledge of the matter said.

The tax department has only reopened assessments in cases where investments were routed through Mauritius. However, like in the case of fund houses and PEs, investments via Singapore and Cyprus too could come under lens. While the tax department has merely reopened the case and sought documents from the MNCs and funds, the fear is that the taxman could trigger judicial GAAR.

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