The Indian Supreme Court has delivered a significant ruling against Tiger Global in a tax case related to its involvement in the Walmart-Flipkart deal, impacting offshore investment strategies. The case centered on whether Tiger Global could leverage its Mauritius-based entities to avoid paying capital gains tax in India following its exit from Flipkart during Walmart’s acquisition. The Supreme Court’s decision overturns previous rulings and strengthens India’s stance against tax avoidance through offshore structures.
Investors are closely monitoring this case due to its implications on cross-border deals and tax obligations in one of the world’s fastest-growing markets. The verdict challenges the common practice of using treaty-routing structures to reduce tax liabilities on high-value transactions, potentially reshaping how global funds approach investments in India.
Tiger Global’s initial investment in Flipkart dates back to 2009, culminating in a substantial stake sale to Walmart in 2018. The tax dispute highlights the complexities of structuring cross-border investments and the limitations of seeking tax relief through bilateral treaties.
Source: TechCrunch