http://www.china-briefing.com/news/2010/02/25/hummer-deal-failed-due-to-non-recognition-of-offshore-holdings.html Fri, 10 Feb 2012 06:20:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.china-briefing.com/news/2010/02/25/hummer-deal-failed-due-to-non-recognition-of-offshore-holdings.html/comment-page-1#comment-28053 Chris Devonshire-Ellis Mon, 01 Mar 2010 11:02:23 +0000 http://www.china-briefing.com/news/?p=6600#comment-28053 Thanks Ray. Its an increasing trend. Hutchinson's take over of Essar in India message texting has run into similar problems with Hutch now facing a huge Indian tax bill. M&A lawyers need to get far more international tax savvy. - Chris Thanks Ray. Its an increasing trend. Hutchinson’s take over of Essar in India message texting has run into similar problems with Hutch now facing a huge Indian tax bill. M&A lawyers need to get far more international tax savvy. – Chris

]]> http://www.china-briefing.com/news/2010/02/25/hummer-deal-failed-due-to-non-recognition-of-offshore-holdings.html/comment-page-1#comment-28018 Ray Hazard Fri, 26 Feb 2010 04:52:45 +0000 http://www.china-briefing.com/news/?p=6600#comment-28018 Most interesting observation. Several countries are now looking at tax on transactions involving offshore jurisdictions. I hadn't realised China had acted on this and taken implied juridiction over taxable income from transactions involving offshore companies and Chinese businesses. If the USD150million was correct as a buying price, it would have meant GM forking out USD37.5million to the SAT. I'd be interested to see if any companies intend to test this claim in court. It may spell the end for offshore jurisdictions in M&A. Most interesting observation. Several countries are now looking at tax on transactions involving offshore jurisdictions. I hadn’t realised China had acted on this and taken implied juridiction over taxable income from transactions involving offshore companies and Chinese businesses. If the USD150million was correct as a buying price, it would have meant GM forking out USD37.5million to the SAT. I’d be interested to see if any companies intend to test this claim in court. It may spell the end for offshore jurisdictions in M&A.

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