Tiger Global Case Denies Treaty Benefits Claimed by Mauritius Companies

Volume 13 No 2    /    Read Article

By Abbas Jaorawala (Guest Authors)

The Supreme Court of India issued a landmark ruling in the case of three Mauritius entities owned by the Tiger Global Group in the U.S. The three entities were private companies incorporated in Mauritius. They were formed to undertake investment activities aimed at long-term capital appreciation and investment income. They were regulated by the Mauritius Financial Services Commission (“F.S.C.”) and held Category I Global Business Licenses under the Financial Services Act, 2007. Each held a valid Tax Resident Certificate issued by the Mauritius Revenue Authority, which certified their status as tax residents of Mauritius for income tax purposes. The Indian Supreme Court was unimpressed. The arrangement had the correct form, but in the facts presented, the form lacked economic substance. Abbas Jaorawala, a Senior Director and Head-Direct Tax of Khaitan Legal Associates, Mumbai, explains all.   See more →