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Insight Center: Events & Webinars

Lessons Learned from Vodafone and Recent Tax Cases in India and How They Affect the Corporate and Tax Structuring of India-U.S. Cross Border M&A Transactions and Investments

Speakers: Abhishek Goenka, Valérie Demont and Steven D. Bortnick

11/08/2011

November 8, 2011

The rulings of the Bombay High Court in the US$2.5 billion tax assessment case against Vodafone in Vodafone v. Union of India and the rulings in Aditya Birla Nuvo Limited v. DDIT and Union of India, New Cingular Wireless Services Inc. v. DDIT and Tata Industries Ltd. v. DDIT are full of cautionary tales for foreign investors in Indian-related assets. These cases are examples of the aggressive drive of Indian tax authorities in assessing taxes on transactions they believe have a nexus with India, and their repeated attempts to narrow the protection afforded by the India-Mauritius tax treaty.

For those doing business in India or investing there, these cases are a reminder of the high tax risks and costs of doing business in India and exemplify how poor tax structuring of India-related transactions can result in hefty costs to buyers and sellers. For the Indian government, these cases are a growing problem as they are negatively affecting foreign investment in the country.

This webinar will address in particular:

  • the issues and concerns raised by the recent tax cases
  • the lessons learned from the corporate and tax structuring of investments
  • what is happening with the treaty jurisdictions that have favorable DTAs with India
  • where tax issues can unexpectedly arise
  • U.S. tax issues for investments in India
  • issues surrounding foreign tax credits.

 

 

Event Documents

Post-Event Document (.wmv)
Post-Event Document (.pdf)