In what is considered the biggest e-commerce buyout in history, Walmart last year shocked the Indian market when they swooped in to acquire e-commerce giant, Flipkart for a whopping $16 billion. Of course, the deal would have got the Income Tax Department on their feet, and a few days back, representatives of Walmart said that they would have to direct $1.5-2 billion as taxes following the acquisition to the Government of India.
The 77% buyout of Flipkart will see Walmart become the largest stakeholder in the company, and the company has assured that their payout to exiting partners such a eBay, Softbank, Flipkart’s co-founder Sachin Bansal, and Naspers, will be done so following deduction of taxes. In fact, SoftBank who has decided to sell their 20% stake in the company following the acquisition has a tax liability of approximately $600 million.
Replying to the fat tax cheque that they would have to direct to the Government of India, the retailer said that they will fulfill their tax and legal obligations to the Government of India and take such matters seriously in all the countries that they operate in. The retailer concluded by saying that they will respond to any sort of inquiry that the Income Tax Department of India makes with regard to their tax liabilities following the acquisition.
Source: Times of India