SMFG Said to Face $670 Million Tax on Fullerton India Deal

The video discusses Sumitomo's unexpected $670 million tax bill from Indian authorities, which is significantly higher than the anticipated $170 million. It highlights the history of India's retrospective taxes on multinational companies like Vodafone and Gaines, which were halted by Prime Minister Narendra Modi's administration to improve the business climate. The tax issue poses a challenge for Sumitomo, affecting the broader investment climate in India, especially as the government plans to reduce its stake in state-run companies like IDBI Bank. The situation is a setback for Modi's business-friendly image.

What was the initial tax amount Sumitomo expected to pay?

• $170 million

• $500 million

• $670 million

• $1 billion

Which companies were previously affected by India's retrospective taxes?

• Apple and Google

• Gaines and Vodafone

• Samsung and LG

• Microsoft and Amazon

What action did the Modi administration take regarding retrospective taxes?

• Abolished them

• Increased them

• Ignored them

• Reduced them

What is the Indian government planning to do with its stake in IDBI Bank?

• Increase it

• Sell it

• Maintain it

• Double it

Why is Sumitomo interested in diversifying in Asian markets?

• Economic growth in Japan

• Slowdown in Japan

• Political stability in Japan

• High taxes in Japan