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Indian court confirms Redington's use of foreign subsidiaries avoided tax

A taxpayer s intentions at the time of a transaction will significantly influence a court s opinion
The Madras High Court delivered a judgment on tax avoidance in the case of
Redington India Limited (company) on December 10 2020. The company had transferred its entire holding in an overseas company to another newly incorporated step-down overseas subsidiary without consideration. It claimed the transaction as a gift and, thus, non-taxable under domestic tax law.
The case before the Madras High Court mainly involved whether the transaction was a valid gift as per domestic laws, and hence out of the scope of capital gains tax, and the applicability of transfer pricing laws to the transaction. ....

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Principal Commissioner Of Income ... vs M/S.Redington (India) Limited on 10 December, 2020

Principal Commissioner Of Income ... vs M/S.Redington (India) Limited on 10 December, 2020
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