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India Tax Probe Targets US Investor Jane Street
7 Feb
Summary
- India's tax department seeks GAAR against US investor Jane Street.
- Jane Street allegedly manipulated prices for unlawful gains.
- Tax authorities seek to tax $4,843.5 crore in alleged unlawful gains.
The Indian tax department is reportedly moving to invoke General Anti-Avoidance Rules (GAAR) against US investor group Jane Street. This action follows an investigation into allegations of security price manipulation for unlawful profit generation. The Income Tax department's investigation wing has recommended denying tax benefits claimed by Jane Street under the India-Singapore tax treaty.
The probe suggests that profits recorded by Jane Street entities during a period reviewed by the Securities & Exchange Board of India (Sebi) should be taxed in India as capital gains. Jane Street allegedly used its Indian entities for intra-day trades to influence prices, while its registered foreign portfolio investors in Singapore and Hong Kong took large positions in equity options, booking most profits in Singapore to avoid Indian taxes.
