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In Cases of Retro Tax – Now the Buyer Firms are seeking Indemnity from Seller Firms of Retrospective Tax Demands :- ET - Chartered Online - Finance | Taxes | Laws

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In Cases of Retro Tax – Now the Buyer Firms are seeking Indemnity from Seller Firms of Retrospective Tax Demands :- ET

September 13, 2018

Some private equity transactions are facing delays and possible collapse as potential buyers insist on general indemnity against any retrospective tax demand by the government after the purchase of the asset.

Lawyers, consultants and executives at top tax firms said deals involving strategic or majority stakes are falling through as potential buyers insist the seller be made liable for retrospective tax demands, if any. This has made sellers wary as nobody wants to take on the responsibility of negotiating a tax demand years after selling off an asset.

Read more at:http://economictimes.indiatimes.com/articleshow/47450567.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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