MUMBAI: A well-known New Delhi-based business family, whose two sons are non-resident Indians, feared that their wealth could be taxed not just in India, but also in the US.
The fear has led them to restructure their family trust so that it attracts minimal tax. The family trust, which until now was based in India, is being shifted to an offshore location, and the stake of the family members realigned.
The promoter of an auto component company, which had made acquisitions in Europe, got his son take up UK citizenship about a year ago. This was done primarily because the businessman feared Indian regulations around place of effective management could lead to increased tax liability in India. Now the fear is, when the wealth is passed …
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