Retrospective tax is nothing but a combination of two words \u201cretrospective\u201d and \u201ctax\u201d where \u201cretrospective\u201d means taking effect from a date in the past and \u201ctax\u201d refers to a new or additional levy of tax on a specified transaction.<\/p>\n
Hence,\u00a0retrospective tax <\/strong>allows a country to pass a rule on taxing certain products, items, or services. This taxation is applied to the companies from a previous date<\/strong> i.e. before the date on which the law is passed.<\/p>\n Countries correct anomalies in their taxation policies, that have, in the past, allowed companies to take advantage of such loopholes.<\/p>\n Many other countries like the USA, the UK, the Netherlands, Canada, Belgium, Australia, and Italy have retrospectively taxed companies.<\/p>\n Retrospective Taxation hurts companies that had knowingly or unknowingly interpreted the tax rules differently<\/strong>.<\/p>\n For example, In 2012, the Indian government then retrospectively amended the tax code<\/strong>, giving itself the power to go after mergers and acquisitions(M&A) deals all the way back to 1962 if the underlying asset was in India.<\/p>\n","protected":false},"excerpt":{"rendered":" Retrospective tax is nothing but a combination of two words \u201cretrospective\u201d and \u201ctax\u201d where \u201cretrospective\u201d means taking effect from a date in the past and \u201ctax\u201d refers to a new or additional levy of tax on a specified transaction. Hence,\u00a0retrospective tax allows a country to pass a rule on taxing certain products, items, or services.… Continue reading What is retrospective taxation?<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-117794","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/117794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=117794"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/117794\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=117794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}