Monday, March 12, 2007

RED HERRING | India’s Option Shock

"Proposals by India’s government to ratchet up taxes on local companies is raising concern among Silicon Valley venture capitalists, just as they seem poised to double their investments in the country’s burgeoning technology sector.
U.S. lawyers and overseas tax experts said recent statements by Finance Minister Palaniappan Chidambaram, who proposed a 35 percent tax on stock options issued by Indian companies and threatened to shut down an offshore tax haven, could stifle growing VC interest in the country.
“Hopefully someone will say something, because they’re shooting themselves in the foot,” said Tahir Naim, a senior associate at law firm Fenwick & West’s offices in Menlo Park, California."

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