The government said it has identified a few more cross-border merger and acquisition cases, including Barclays-Intelnet deal, for possible tax evasion after slapping Rs 11,000-crore (Rs 110 billion) tax notice on Vodafone for Hutchison Essar deal.
"A few cases relating to cross border merger and acquisition deals have been identified for further examination by the (Income Tax) Department. These deals are being examined for possible tax implications," Finance Minister Pranab Mukherjee told the Rajya Sabha in a written reply.
Deals between SKR BPO Services and Barclays Mauritius for Intelnet Global Services, and transfer of stake in GE Capital International Services, or Genpact India, are some of these cases, he said.
In October this year, Blackstone-owned Intelnet Global Services announced a strategic partnership with Barclays Bank Plc. As part of the partnership, Barclays has acquired a 12.75 per cent stake in SKR BPO Services, the holding company of Intelnet Global Services.
He said actions have been taken in transactions between Sanofi Pasteur, Merieux Alliance and Groupe Industriel
Marcel Dassault for acquiring Shantha Biotechnics Ltd, between New Cingular Wireless Services Inc and AT&T Maritius for Idea Cellular.
He said New Cingular Wireless and MMM Holding sold their shares in AT&T Cellular to Tata Industries for $150 million no tax deduction at source was done by Tata Industries, accordingly the Indian company paid Rs 45.50 crore (Rs 455 million) towards tax.
Another case, Sanofi had paid Rs 648.54 crore (Rs 6.48 billion) to the taxman as the company did not deduct tax at source before making payment of 55 million euro to Merieux Alliance and Groupe Industriel Marcel Dassault for acquiring Shantha Biotechnics.
"As and when any tax evasion relating to mergers and acquisitions is detected, appropriate action is undertaken in accordance with the provisions of the Income Tax Act, 1961," Mukherjee added.
