News & Media 13th Jun 2025

Why corporate guarantees have emerged as a new battleground in tax disputes

Authors

Kumar VisalakshPartner | New Delhi | Noida

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Our Partner Kumar Visalaksh shares his insights in the Business Standard article, “Why corporate guarantees have emerged as a new battleground in tax disputes”, authored by Monika Yadav.

The article explores the intensifying focus of tax authorities on corporate guarantees particularly in cross-border transactions marking them as a fresh area of contention in transfer pricing disputes. With companies increasingly providing guarantees on behalf of group entities, questions around the arm’s length nature of such guarantees and their valuation have become a key concern.

Mr. Visalaksh offers his perspective on the legal and economic complexities that surround these arrangements and how recent judicial pronouncements and evolving regulatory stances are impacting multinational corporations.

A timely read for businesses navigating transfer pricing risk and inter-company financial support structures.

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