Fullerton acquisition deal: Sumitomo Mitsui Group faces $670-mn tax bill

The South Asian govt's tax department has asked the bank to pay the amount on behalf of seller Fullerton Financial Holdings Pte, arguing that it should have withheld the sum during the acquisition

Sumitomo Mitsui Financial Group is facing a $670-million tax bill from India on its $2-billion acquisition of Fullerton India Credit, far outweighing what the Japanese lender has set aside, according to people familiar with the matter.

The South Asian government’s tax department has asked the bank to pay the amount on behalf of seller Fullerton Financial Holdings Pte, arguing that it should have withheld the sum during the acquisition, the people said, asking not to be named as the information isn’t public.

Sumitomo Mitsui held back only $170 million for the deal, whi­ch compl­e­ted last year, taking its