This editorial “Azim Premji’s philanthropy” points that cynics are questioning Mr Premji’s motives on tax considerations. The subject matter of the trust property is shares and income from those shares — dividend is, in any case, tax-free in the hands of the recipients. My criticism stems from the fact that Wipro has all along been a closely-held company and the trust created by Mr Premji would give the company just a veneer of public participation inasmuch as he would continue to call the shots in the trust.
I have harked back to exercising voting rights in trusts by public trustees and also conceded that the dividend income would indeed take forward the noble mission of imparting education. My argument is not that it is a case of tax avoidance but that it involves bypassing the 25 per cent public participation norm so that the company may remain listed.
S Murlidharan, on email
