India’s Tax Battles Move to Global Stage as Companies Fight Back

June 4, 2018, 9:06 AM

Multinational companies are still plagued by India’s aggressive tax system, despite the country’s claim that it has taken steps to encourage investment.

That dynamic is seen in two major tax disputes—with Vodafone Group Plc and Cairn Energy—that have moved to the international stage in the past several months, tax professionals said. The progress of the disputes calls into question India’s tactics to recover tax demands, and the capacity of international tax and investment treaties to protect companies without compromising a nation’s sovereignty.

The Indian tax authority has taken steps to remove the bottlenecks that hamper companies, like ...

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