UK's Osborne says India should have predictable tax system

The UK government has taken up the retrospective taxation proposal concerns with Finance Minister Pranab Mukherjee.

Speaking exclusively to CNBC-TV18, UK chancellor George Osborne says India should have a predictable tax system but added he is not going to threaten retaliatory action over the proposed amendment.
In a joint statement issued after the meeting UK Chancellor George Osborne had with Indian officials, both sides announced an agreement to improve tax compliance and decrease tax evasion.
The statement went on to say that funds of the IMF should be adequately increased to help it play a meaningful role in mitigating global economic problems. Also Read: Vodafone calls govt move 'arbitrary, punitive'
Last month's Budget outlined proposals that would allow authorities to make retrospective tax claims on overseas deals, such as Vodafone Group Plc's USD 11.5 billion acquisition of India's Hutchison Essar in 2007. Below is an edited tramscript of his interview. Watch the accompanying videos for more. Q:  What are your concerns and apprehensions to the proposed amendment?
A: Britain and India have a very good, strong and warm relationship. We can be candid because we are friends and my own personal relationship with Mukherjee is a strong one because he is a man of real integrity. I have raised our concerns about the recent Budget in particular the suggestion on the retrospective taxation of certain investments into India.
Not because of one company but actually because I want to make sure that the environment for investment in India is a strong and predictable one. That will be good for India as well as good for Britain and other countries. I have been very candid but that won