Income tax dept opposes benefits to Jane Street Singapore

Synopsis India’s tax office has challenged treaty benefits claimed by Jane Street’s Singapore arm, suspecting ?8000 crore in escaped income. The department invoked the MLI-Principal Purposes Test, questioning if obtaining treaty benefits was a primary purpose of the arrangement. This move could impact tax exemptions on derivative profits for Singapore-based FPIs. Mumbai: The Indian tax office has challenged the treaty benefits claimed by the Singapore arm of the American investor group Jane Street in a draft order sent in end-March. The Income tax (I-T) department is learnt to have invoked the ‘Multilateral Instrument-Principal Purposes Test’ (MLI-PPT) provision in the India-Singapore…