Indian Supreme Court ruling on Tiger Global tax case sparks concerns among startup investors
A group of sixty startups has requested government guidance following a ruling on Tiger Global. The court found Mauritius tax benefits were misused in 2018.
Insights:
The Supreme Court of India 
INruled last week that Mauritius 
MUbased entities used by Tiger Global to sell its $1.6 billion stake in Flipkart to the United States 
USfirm Walmart Inc. in 2018 were conduits to evade taxes. This decision under the India-Mauritius treaty established that domestic tax-evasion laws could override treaty benefits claimed wrongly. While Tiger Global has denied any wrongdoing and stated it correctly used available tax benefits, the decision has created significant uncertainty regarding the legal status of historical investments that have funded the startup ecosystem in India.
INruled last week that Mauritius MUbased entities used by Tiger Global to sell its $1.6 billion stake in Flipkart to the United States USfirm Walmart Inc. in 2018 were conduits to evade taxes. This decision under the India-Mauritius treaty established that domestic tax-evasion laws could override treaty benefits claimed wrongly. While Tiger Global has denied any wrongdoing and stated it correctly used available tax benefits, the decision has created significant uncertainty regarding the legal status of historical investments that have funded the startup ecosystem in India.
