Businesses anticipating tax authorities to assess hybrid instruments aggressively: Deloitte

NEW DELHI: Indian businesses are anticipating a “more aggressive” stance by tax authorities as their tax arrangements come under greater scrutiny, says a survey.

The findings are part of leading consultancy Deloitte India's BEPS (Base Erosion and Profit Shifting) survey titled ‘Anticipating BEPS India impact’.

About 65% of the respondents either “agree or strongly agree” that although the tax authorities have not been aggressive in tax examinations of hybrid instruments and interest deductions so far, they are likely to do so going forward.

“Retrospective amendments in India have significantly dented investor confidence in the past,” it noted.

Further, the survey said vast majority of the respondents believe that regulators should consider and protect the interests of Indian headquartered multinationals while implementing BEPS recommendations in India.