sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Mergers and Acquisitions »
 How can HR help with mergers and acquisitions?
 Here are the top 10 acquisitions to have happened in India
 The difference between mergers and acquisitions
 Mergers and acquisitions: Know what rights you have as employees
 Deals of the day-Mergers and acquisitions May 8, 2018
 Motherson Sumi plans 3 acquisitions in 6 months
 How tax reform is expected to alter the mergers and acquisitions landscape
  Metro Cash and Carry eyes acquisitions to aid digitization plan
 Metro Cash and Carry eyes acquisitions to aid digitization plan
 Deals Of The Day-Mergers And Acquisitions May 1, 2018
 Deals of the day-Mergers and acquisitions APRIL 26, 2018

Tax companies on gross profitability to deter mergers
December, 04th 2009

Sir, Was it mere fortune or deliberate mischief that caused John Gapper's eulogy on the British approach to mergers and acquisitions ("A healthy appetite for the right price", November 26) to appear directly above Maurice Saatchi's hand-wringing article asking what can be done to prevent the concentration of power in fewer and fewer hands ("Only competition can safeguard free markets") ?

It seems self-evident, based on Mr Gapper's analysis, that the "self-interest of rational individuals" (Lord Saatchi's phrase) will lead them to always agree to a sale if the price is right.

After all, if they have no intention of being part of the merged company, what do they care whether it continues to function? The ultimate conclusion must be that there will be ever fewer, increasingly large businesses in the marketplace. And the implication is that those businesses will be increasingly inefficient.

The government can, and should, act to reverse this trend. A simple solution would be to introduce a progressive corporation tax - acting like the current income tax - that penalises companies based not on their net profitability but on their gross profitability.

Such a tax would act as a strong deterrent to companies becoming ever larger and create an incentive for demergers.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions