India Tax Survey ICI is surveying members investing in India regarding their experience either undergoing or considering a reorganization and the India tax implications for their funds. Individual firm responses to this survey will be maintained as confidential and only anonymized and aggregated data will be used in connection with ICI’s advocacy efforts and discussions with policymakers. We are requesting the name and contact details for respondents so we can share the aggregated and anonymized survey responses as may be appropriate with survey participants and for any necessary follow up.Currently under Indian tax law, foreign (i.e., non-Indian) fund reorganizations are taxable if either: the reorganization involves a foreign regulated fund organized as a non-corporate entity (for example: trust, partnership firm, etc.), or the reorganization results in transfer of securities other than shares (e.g., Indian debt securities, Indian derivatives, units of business trusts) regardless of whether the foreign regulated funds are organized as corporates or non-corporates. In contrast, foreign regulated funds organized as corporations that invest in Indian equity shares are permitted to undergo tax neutral reorganizations. Similarly, Indian mutual funds that reorganize do not suffer any Indian tax consequences. Consequently, reorganizations cause foreign regulated funds to prematurely (at the time of reorganization) recognize gains and related taxes that otherwise would not be recognized until such funds ultimately dispose of their Indian securities, and also puts them on an unlevel playing field with domestic mutual funds and foreign regulated funds organized as corporations.In this context, we have strongly urged the Indian Government to enact legislation that permits all foreign regulated funds, regardless of form, to undergo tax neutral reorganizations with respect to all Indian securities (i.e., equity, debt, derivatives, units of business trust, etc.), provided the reorganizations are tax neutral in the funds’ home countries.Each member firm should complete only one survey response by May 29, 2024. Please contact Katie Sunderland (katie.sunderland@ici.org) with any questions. Section 1: General Question Title * 1. Please enter your name below Question Title * 2. Please enter your firm name below Question Title * 3. Please enter your email address below Question Title * 4. What is the legal form of organization of your firm’s US and non-US regulated funds? [Select all that apply] Stand-alone fund organized as a non-corporate (e.g., Massachusetts Business Trust, Delaware Statutory Trust, non-US trust, etc.) Stand-alone fund organized as a corporation (e.g., Maryland Corporation, Public Limited Company, etc.) Multiple funds organized as a series/sub-funds of a non-corporate (e.g., Massachusetts Business Trust, Delaware Statutory Trust, etc.) Multiple funds organized as a series/sub-funds of a Corporation (e.g., Maryland Corporation, Luxembourg SICAV, etc.) Other (Please explain) Section 2: Reorganizations of funds having an exposure in India Question Title * 5. Since the reenactment of long-term capital gains tax in 2018, have any of your funds avoided, cancelled, or suspended a reorganization due to Indian tax implications? Yes No If your answer is "Yes," please indicate the number of funds that avoided, cancelled, or suspended a reorganization. Next
