- In 1987, PM Rajiv Gandhi, in charge of the Finance portfolio, introduced what he called a “Minimum Corporate Tax”. This was to target corporates which made profits & paid dividends to shareholders, but paid very little or, in some cases, zero taxes.
- The law back then allowed several deductions and exemptions which could be utilised to significantly lower or escape tax liability.
- In came P.Chidambaram & Yashwant Sinha respectively along the FM portfolio and FIIs (foreign institutional investors) were exempted from MAT.
- But the IT dept. raised hue and cry when they issued notices to some of the FIIs for past settlements.
- You know how powerful these global investors lobbies are right?
Posted on | The Indian Express