In the present article, we have analysed the historical background, legislative developments and examine the ambiguity surrounding taxability of ‘slump sale' especially in a case where business is transferred as a whole for non-monetary consideration. Stating that transfer of undertaking for a...

The entitlement of tax treaty benefits is one of the most sensitive things for countries around the globe. The reason for it being sensitive is to ensure that benefits are granted only to persons who are genuinely entitled to them, and also to avoid any kind of tax abuse. The first step in...

The recent decision given by the Bombay High Court in the case of Bharat Bijilee Ltd., has reiterated the principle that where the transfer of undertaking takes place in lieu of non-monetary assets e.g. shares and debentures etc., then in such a case the transaction will not qualify as 'slump...

Tax treaties are legal agreements entered into by the states and is governed by the Vienna Convention on The Law of Treaties, 1980 (‘VCLT'). In a situation of conflict, principles of VCLT are referred to give a fair interpretation. The preamble and Article 26 of VCLT provides that the parties...

Strategic acquisition of a target by an acquirer by paying more than its book net worth is very common in mergers and acquisitions deals as the acquisition price is generally based on the fair market value of business. The excess price is generally paid on account of various factors such as...

The tax treaties provide for allocation of taxing rights between the residence state and the source state in respect of passive income. The passive income's primary right of taxation is granted to the resident state through paragraph 1, though, paragraph 2 provides that such income may also be...

The Hiring Incentives to Restore Employment (HIRE) Act of 2010 was enacted by the 111th United States (US) Congress on March 18, 2010 to provide payroll tax forgiveness for hiring unemployed workers and business credit for retention of certain newly hired individuals in 2010. The Foreign Account...

The Irish Minister of Finance presented the budget proposals on 14th October, 2014 with an aim to shut down the [ab]use of much criticized ‘Double Irish Dutch Sandwich' structures commonly used by United States (US) Multinationals Companies (MNC's). The proposal was that from 1st January, 2015...

Passive income in the nature of FTS, royalties, dividend and interest etc. if connected with the PE are taxed as business profits under Article 7 of the respective treaty. FTS is treated as PE profits if the contract generating FTS is effectively connected with the PE. This article analyses as...