Archive · 22 Jan 2026
Tiger Global ruling impacts tax insurance for M&As
The Supreme Court of India recently ruled that Tiger Global, a US-based investment firm, must pay capital gains tax on its sale of Flipkart shares to Walmart.
This decision is important because it sets a precedent for how taxes are applied to similar deals.
Experts say this ruling might make it harder and more expensive to get insurance for tax risks in future mergers and acquisitions.
Insurance companies might now be more careful and charge more because of the uncertainty created by this ruling.
This could affect how deals are structured and insured in the future.
The Supreme Court ruled that Tiger Global must pay capital gains tax on its $1.6 billion Flipkart share sale to Walmart, overturning a Delhi High Court decision.
The ruling sets a precedent for taxing transactions under the Mauritius tax treaty, impacting future M&A deals.
Insurance companies may subject M&A deals to stricter scrutiny and charge higher premiums due to increased tax and legal risks.
Tax liability insurance, which protects against tax disputes, may become less available or more expensive.
Consulting and law firms are advising clients to be more cautious in structuring deals and seeking insurance.
- Who
- Tiger Global, Supreme Court, Insurance Companies, M&A Advisers
- What
- Supreme Court ruling on Tiger Global's tax liability for Flipkart share sale
- When
- 15 January 2024
- Where
- India
- Why
- To determine tax liability under the Mauritius tax treaty
- Company Involved
- Tiger Global
- Transaction Amount
- $1.6 billion
- Transaction Year
- 2018
- Court Ruling Date
- 15 January
- Tax Treaty Article
- Article 13(4)
- Impact on Insurance
- Stricter scrutiny and higher premiums