17 Apr, 2012

Amarchand & Mangaldas & Suresh A. Shroff Co. acted as an advisor to Japan’s largest non-life insurer, Mitsui Sumitomo, in signing of a transaction which involved purchasing of 26% stake from New York Life Insurance (‘NYL’) in Max New York Life Insurance (‘MNYL’) for the total consideration of INR 2,731 crores($530 million).


For tax negotiation, New York Life Insurance was represented by Freshfields and BMR whereas Mitsui was represented by Paul Weiss and Amarchand Team including Bangalore-based partner Nivedita Rao & senior associate Anand Jayachandran and Delhi-based principal associate, Amit Singhania.


This deal is significant as New York Life Insurance was holding its stake in Max New York Life Insurance through Mauritius and contended that no tax is liable to be paid in India owing to the Indo-Mauritius tax treaty benefits. The estimated tax liability is approximately INR 350 crores.


Amarchand Mangaldas negotiated full tax withholding along with indefinite tax indemnity without cap on account of growing uncertainty in Indian tax landscape particularly in wake of proposed GAAR provisions and DTC.

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