Allocation of Taxing Rights on Income from Cross-Border (Indirect) Sale of Shares

In this article, the author discusses the various approaches taken in relation to the taxation of cross-border (indirect) sales of shares, which is a complex issue from a tax policy perspective. Focus is given to the situations in India and China where recent cases such as Vodafone and Chongqing have made headlines. The application of domestic anti-avoidance rules to such transactions and the validity of this approach is also discussed.