Saturday, November 06, 2021

At $102.1 billion Mr Ambani has to be a genius.

"India's richest man, Mukesh Ambani, is building a second nest for himself and his family but this time....it's located in the West. According to a report in Mid-Day, The Ambanis are planning to shift base to the 300 acre London property in Buckinghamshire, Stoke Park," ET. In the United Kingdom. "Reportedly, after the Ambanis spent most of their time during the lockdowns and pandemic inside their posh sky-high residence 'Antilia' located on Altamount Road -- one of the most expensive neighbourhoods located in Mumbai -- the family realised they needed a second property to call home." Poor Ambanis, we sympathise. 'Antilia' is apparently the name of a mythical island in the Atlantic to the west of Portugal, wikipedia, but the name is now more famous as Ambani's residence which is "at 27 stories, 173 meters, (568 ft) tall, over 37,000 sq meters (400,000 sq ft), and with amenities such as three helipads, air traffic control, a 168-car garage, a ballroom, 9 high-speed elevators, a 50-seat theater, terrace gardens, swimming pool, spa, health center, a temple, and a snow room that spits out snowflakes from the walls", wikipedia. Built at a cost of $1-2 billion. Must have been torture being stuck inside that for a year. So Ambani bought the UK property for Rs 5.92 billion which has just "49 rooms, a state-of-the-art medical facility, a shrine that replicates the one in their Mumbai house". Earlier this year, vaccine billionaire Adar Poonawalla rented a house in Mayfair in London for a mere 50,000 pounds ($69,000) or Rs 5 million per week, BT. However, "Reliance Industries Ltd said Chairman Mukesh Ambani and his family have no plans to relocate," ET. "Reliance said the report amounted to 'unwarranted and baseless speculation'." "Clarifying about their Stoke Park acquisition, the statement said that the heritage property acquired by Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly owned subsidiary of RIL, will be enhanced into an exclusive golfing and sporting resort," ET. With a net worth of US$102.1 billion as of 14th October 2021, Ambani is the richest man in Asia and the 10th richest in the world, wikipedia. He has to be a genius to make that much money. Would he design the house as a family residence with a Hindu shrine if he intends to use it as a golf club? We can only speculate with our limited intelligence and knowledge. Corporate tax rate in India is 30% for domestic companies with a turnover of over Rs 4 billion, Income Tax Dept. Reliance Industries declared revenue of Rs 4.83 trillion, operating income of Rs 761.34 billion and net income of Rs 532.23 billion, wikipedia. So it is definitely in the 30% tax rate. Corporate tax rate is 0% in Bahamas, Bahrain, Bermuda, Cayman Islands, Isle of Man, the United Arab Emirates (UAE) and Vanuatu, Trading Economics. Of these, Bermuda, Cayman Islands and Isle of Man are British territories. India has signed up to a deal in which it can collect corporate tax at 15% from a multinational company on income generated from business inside the country, BBC. Mr Ambani can transfer control of Reliance to a holding company in any of the jurisdictions with 0% tax rate which would then make it liable to pay 15% corporate tax on income from its businesses in India, which is half of 30%. Since his income will come from a foreign registered company he will probably not be liable to pay income tax in India as he will be non-resident Indian (NRI), ET. Personal income tax in India is at 30% for income above Rs 1 million with a surcharge of 37% on any income over Rs 50 million and a 4% health and education cess, Income Tax Department, so that anyone earning more than Rs 50 million in one tax year will be taxed at an effective rate of 42.7%, pasiabazaar. Saving even 1% on $100 billion will be $1 billion. And, we know Mr Ambani is a genius. 

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