As governments worldwide continue to react to economic conditions, a variety of measures and approaches to tax policies are emerging to not only plug holes in public finances and claw back much needed revenue, but to attract new investments to countries' shores. Taxand looks at the changing tax policies around the world and what 2012 holds for multinationals

The Supreme Court of India (“SC”) pronounced its decision in the controversial and high stakes tax dispute involving sale of shares of an offshore entity, holding underlying Indian shares / assets, by Hutch to Vodafone. The decision reinforces many of the important international taxation principles, as well as the importance of adherence to the Rule of Law. Taxand India considers this landmark decision, highlighting crucial findings and principles and its implications. 

Vodafone has won its $2.5 billion tax battle with the Indian tax authorities. The Supreme Court ruling marks the end of a much-discussed and widely controversial chapter on the taxation of international transactions. Chief Justice Kapadia told the court that the tax department had no jurisdiction to tax the telecommunication company's 2007 $11 billion purchase of 67% stake in Hutchison.