COMPANIES TAKING LLP ROUTE TO ESCAPE TAX LIABILITY

Corporates are masking their true identities to jump regulatory hurdles and form holding entities that help them lower their tax burden. Promoters of at least 30 companies have formed limited liability partnerships (LLPs) by suppressing the information that the newly-floated LLPs would serve as group investment companies, a disclosure that would have called for a non-objection certificate from the Reserve Bank of India (RBI).