Income tax lens on more cross border Merger & Acquisitions
December, 04th 2010
The income-tax department is examining a few cases of cross border mergers and acquisitions (M&A) for tax related issues, the government informed Parliament on Friday.
They include Sanofi Pasteur Holding's acquisition of Hyderabad-based Shantha Biotechnics and Barclays investment in business process outsourcing company Intelnet Global Services.
A few cases relating to cross border M&A deals have been identified for further examination by the revenue department, minister of state for finance, SS Palanimanickam said in written reply to a question in Lok Sabha on Friday.
The deal of SKR BPO Services with Barclays (H&B ) Mauritius for acquiring Intelnet Global Services is also been examined by the I-T department for possible tax implications.
Sanofis vaccine arm had bought ShanH, which owns 80% of Shantha Biotechnics, from the Merieux Alliance and Groupe Industriel Marcel Dassault for $784 million in 2009.
Blackstone-owned Intelnet Global Services formed a strategic partnership with Barclays Bank. As part of the partnership, Barclays has acquired a 12.75% stake in SKR BPO Services, the holding company of Intelnet Global Services.
Mr Palanimanickam also mentioned Vodafones $11-billion acquisition of Hutchison Essar and deal between New Cingular Wireless Services with AT&T Mauritius for acquiring Idea Cellular and also stake transfers in GE Capital International Services/Genpact India.