The Indian Supreme Court has held that the 1.6 billion dollar transaction entered into by Tiger Global is an impermissible tax-avoidance arrangement.
The investment firm sought to claim exemption from Indian capital gains tax on the sale of shares in a Singapore company whose value was substantially derived from Indian assets.
The Court held that the company was not entitled to capital gains tax exemption under Article 13(4) of the India–Mauritius tax treaty because the structure constituted an impermissible tax avoidance arrangement under India’s General Anti-Avoidance Rules.