"India's top court has ruled against Tiger Global in a tax case stemming from its Flipkart exit during Walmart's 2018 takeover, a decision that strengthens New Delhi's ability to challenge offshore treaty structures and could raise tax risk for global funds counting on predictable exits from one of the world's fastest-growing major markets. On Thursday, the Indian Supreme Court backed the tax authorities in a dispute over whether Tiger Global could use its Mauritius-based entities to claim protection under the India-Mauritius tax treaty"
"The decision set aside a 2024 Delhi High Court ruling that had overturned a 2020 order by the Authority for Advance Rulings, which had found the firm was, prima facie, avoiding tax and therefore not eligible for treaty relief. The ruling is being closely watched by investors, as it strengthens India's hand in challenging offshore "treaty-routing" structures that have long been used to reduce tax on high-value exits."
The Supreme Court of India ruled against Tiger Global in a tax dispute tied to its Flipkart exit during Walmart's 2018 takeover. The court held that Mauritius-based entities could not automatically claim protection under the India-Mauritius tax treaty when a transaction appears designed to avoid tax. The decision set aside a Delhi High Court ruling and revived a 2020 Authority for Advance Rulings finding that the arrangements were prima facie tax-avoidance. The judgment strengthens India's ability to scrutinize treaty-routing structures and may increase uncertainty and tax risk for foreign funds exiting Indian investments.
Read at TechCrunch
Unable to calculate read time
Collection
[
|
...
]