Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: cpt :: form 3cd :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: VAT Audit :: Central Excise rule to resale the machines to a new company :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS
 
 
« Mergers and Acquisitions »
 Preparing for International Mergers and Acquisitions
 Merger control regime: CCI sharing concerns at early stages would reduce trust deficit
  Deals of the day-Mergers and acquisitions
 Oil companies’ mergers: Indian Oil Corporation chairman B Ashok says ‘Worthwhile to look at the possibilities
 It's complicated: Regulatory hurdles that Vodafone-Idea merger could face
 China FX head Pan Gongsheng says overseas mergers and acquisitions like ‘a rose with thorns’
 Technology drove Michigan's mergers and acquisitions in 2016
  Pharmaceutical Mergers And Acquisitions – M&A In The Biopharmaceutical Industry And The Impact On Innovation
 Road ahead for Indian M&A seems brightly lit: PwC report
 Fed eases bank merger rules by lifting size threshold for review
 Deals of the day-Mergers and acquisitions

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 2017 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