Future is Bright, Future is Abu Dhabi

16^th February 2011

Khalifa Industrial Zones Abu Dhabi (KIZAD) unveiled to the Abu Dhabi and the rest of the world on November 13th 2010 and marks the emirates largest infrastructure project. The industrial Zone, which allows 100% foreign ownership and is situated at Taweelah (halfway between Abu Dhabi and Dubai) will prove to be an integral part of Abu Dhabi’s economy.

The magnitude of KIZAD is unprecedented since it’s 4 times bigger than Abu Dhabi Island, 2/3 size of Singapore, one quarter the size of Greater London (covering the distance from Canary Wharf to Slough) and has its own dedicated port. Its construction will continue until 2030 whereby over the years it will become a mega transport hub, linking its self to air, road, sea, and rail. It aims to become one of the largest industrial zones in the world, and by the year 2030 KIZAD aims to provide 150,000 jobs and to host around 100,000 residents-solidifying its importance to Abu Dhabi’s 2030 vision.

Access to local, regional and international markets

KIZAD is the ideal location for businesses to tap into huge regional and global markets. Its world central location means businesses in the Industrial Zone can tap into a market of more than two billion consumers within four time zones. Europe, Russia, India and Africa, are all easily reached while the markets of the Far East - Asia, Korea, China and Japan are readily accessible.

KIZAD will benefit from excellent access by sea though its ultra modern deepwater seaport, Khalifa Port. KIZAD is also directly connected to the markets of the UAE and the wider Middle East. The Industrial Zone and Khalifa Port have excellent access to the UAE’s excellent highway network which links to the Gulf Cooperative Council (GCC) and wider Middle East. Abu Dhabi International Airport and Al Maktoum International Airport in Dubai are both less than 30 minutes away, while the emerging freight and passenger rail networks will link tenants at KIZAD to the far corners of the Arabian Peninsula.

Low cost operating environment

KIZAD can create competitively priced infrastructure solutions tailored to address the specific utilities and logistics needs of major manufacturing projects. One of the major operating costs for industrial companies is utilities, which is why Abu Dhabi offers gas, water and electrical power at some of the lowest rates in the world.

Ease of doing business

At KIZAD support for your business starts even before your operations begin. For example KIZAD’s development of a long term “bankable” agreement ensures easy access to project and investment finance. KIZAD’s Business Development and Customer Relationship Teams include industry people who will help find the right plot for your business, ease you through set up and government certification and ensure that your business’s on-going administrative and business service needs continue to be met.

To make this happen Kizad has refined the One Stop Shop business services concept to deliver unprecedented value and convenience by facilitating relationships with Government and Licensing Authorities as well as utility companies to ensure rapid processing and approvals.

India Expands Information Exchange Network

February 15, 2011

The Central Board of Direct Taxes ("CBDT") has undertaken a series of measures to strengthen the functioning of its international tax wing and its overseas units, directed to building robust information framework and to prevent tax evasion using low tax jurisdictions.

Background

The CBDT, which is the apex body for revenue administration for direct tax in India, has been initiating measures to deepen its information backbone and its enforcement mechanisms to curb practices of tax evasion and siphoning of funds from India. In the same direction, the CBDT has announced further steps being taken such as secondment of personnel to top world economic body Organization for Economic Co-operation and Development ("OECD"), initiation of income tax overseas units and deputation to foreign tax research wing.

Secondment to OECD

The CBDT has now announced that senior Indian Revenue Services ("IRS") officers would be seconded to certain key international posts such the following:

·         To OECD as Advisor, Exchange of Information and Tax Crimes and Other Crimes;

·         To OECD as Advisor, Transfer Pricing; and

·         To Global Forum for Transparency and Exchange of Information for tax matters.

As a part of this arrangement, the officers would interact with tax authorities of other countries and gain expertise to tackle the issue of tax evasion using the tax havens.

Income-tax Overseas Units

The income tax department had established its overseas units in Singapore and Mauritius with effect from May 2010. In addition, the CBDT had announced that senior IRS officers would be deployed to eight other overseas Income Tax units which are to be set up shortly. In addition to the above, the human resource development department of CBDT had earlier announced its posting policy for deputation to the overseas unit. The CBDT had announced that it has received 54 applications for postings at eight overseas units as on February 8, 2011.

Deputations to Foreign Tax and Tax Research Wing

The Income-tax department has also taken steps for posting two additional senior officers as 'Officers on Special Duty' with the Foreign Tax and Tax Research wing of the CBDT. The wing was established to deal with tax research relating to direct tax laws in India and abroad, tax treaties and exchange of information and matters relating to the tax liability of non-residents and other foreigners.