Tax Law

DIT v. Copal Research Mauritius Limited, Moody’s Analytics, USA & Ors.

FACTS Copal Partners Ltd., Jersey (“CPL Jersey“), held 100% shares in Copal Research Ltd., Mauritius (“CRL Mauritius“). CRL Mauritius, in turn, held 100% of the shares in both, Copal Research India Pvt. Ltd., India (“CRIPL India“) and Copal Market Research Ltd., Mauritius (“CMRL Mauritius“). CMRL Mauritius, in turn, held 100% of the shares in Exevo…

Tax Law

Tax Implications on Issuance of Compulsorily Convertible Preference Shares /Convertible Preference Shares

The issuance of Compulsorily Convertible Prefernce Shares (“CCPS“) and Convertible Preference Shares (“CPS“) and conversion thereof can give rise to two kinds of taxing events for the company issuing such shares. First is when the preference shares are simply redeemed either a higher market value or lower market value. Second is when such preference shares…