Wait for Budget '08

This is a follow-up to my earlier post on the taxability of Hutch-Vodafone sale. I came across this new article in the Financial Express which states that "Budget ‘08 may tax cross-border M&As" (Ref: http://www.financialexpress.com/news/Budget-08-may-tax-crossborder-MAs/229055/). According to this article, the income-tax department has decided to treat the tax notice on Vodafone-Hutch as a test case and that taxing the movement of cross-border capital will, therefore, be key to the revenue department’s exercise in the run up to the next Budget.

The Government is seeking to amend the tax laws to bring future cross-border M&A under Indian tax net, but it will be interesting to see how the Vodafone-Hutch transaction is brought under the tax net in India. Or will it be more interesting to see if the present Government will last till Budget '08??

I understand that the Bombay HC has adjourned the hearing on Vodafone writ petition to the 29th of October.

Amidst closely following developments on the above, I also happened to catch the end of one of the best Grand Prix championships. It actually was the most closely fought Grand Prix championship in the last 21 years.