The Vodafone Controversy: International Ramifications of Where Gain Accrues on the Transfer of Shares

It is a common perception amongst tax professionals that capital gains are deemed to accrue or arise in the country where the situs of shares is situated on the transfer of shares. However, this preconceived notion has been shattered by the recent decision of the Bombay High Court in the case of Vodafone International Holdings B.V. v. Union of Indian and Another. This article analyses the Vodafone case and considers its impact on international tax planning.