HNI investors in offshore ‘blank cheque’ companies receive income tax notices

Well-heeled Indians betting on ‘blank cheque’ firms — the Wall Street term for special purpose acquisition companies or SPACs — have started receiving notices from the tax department. On the back of a raft of information shared by Bermuda, which like Cayman Islands, is a preferred jurisdiction for incorporating SPACs, the Income Tax (I-T) department has served notices to at least four people in the last 10 days, sources told ET.

SPACs are formed solely to raise capital by inviting investors in a pre-listing offering with the aim to acquire a stake in an existing, primarily unlisted, operating company.

Read more at: The Economic Times