foreign | Judiciary.org

Civil Law

Regulatory framework governing ‘foreign contributions’: Ambiguity leading to excessive stringency

The Foreign Contribution (Regulation) Act, 2010, and the rules framed thereunder regulate ‘foreign contribution’. This post examines how heightened policing calls for stringent compliance by entities receiving ‘foreign contribution’.

Evolving regulatory framework for ‘foreign contributions’

The first law to regulate ‘foreign contributions’ in India, the Foreign Contribution (Regulation) Act of 1976 (“Old Regime”), was passed during the Emergency to safeguard against the misuse of ‘foreign contributions’ for activities that may be detrimental to ‘national security’.[1] This was thereafter … Read the rest

Civil Law

Salary reimbursement of seconded employees not taxable in the hands of foreign company: Delhi ITAT

The Hon’ble Income Tax Appellate Tribunal (“ITAT”), Delhi has recently held that salary reimbursement of seconded employees paid to the original employer without any profit element is not taxable as fee for technical services.

This case[1] pertains to Ernst and Young LLP, USA (“EY USA”), which is set up in the US. It had sent its employees on secondment (“Seconded Personnel”) to work with various EY member firms in India (“EY India”). … Read the rest

Supreme Court

Israeli citizen challenges U.S. wire-fraud conviction for foreign financial scheme

The Petitions of the Week column highlights a selection of cert petitions recently filed in the Supreme Court. A list of all petitions we’re watching is available here.

The Supreme Court has issued a number of decisions in recent years limiting the reach of the federal wire-fraud statute, which outlaws the use of “the wires” – including internet and phone lines – to commit fraud. This week, we highlight cert petitions that ask the court to consider, among … Read the rest

Supreme Court

Justices probe global consequences of allowing U.S. prosecutions of companies owned by foreign governments

The Supreme Court heard oral argument on Tuesday in the case of a Turkish bank that the U.S. government accuses of committing money laundering and fraud as part of a scheme to evade U.S. sanctions against Iran. During over 90 minutes of debate, the justices appeared skeptical of the bank’s contention that federal laws bar the government from prosecuting the bank, but they also expressed concern about the consequences of allowing the prosecution to go forward.

Halkbank, whose majority … Read the rest