WhenVolkswagen became embroiled with the tax authorities in India over a tax demand related to their methods of importing component parts for their cars last year, the potential risks were high. For those of us in the tax industry, this sort of story is not new.

It was the not the only big name tax dispute in 2025; Kia was also struck with a tax bill by India, while Pernod Ricard, Samsung, Cairn Energy and most notably Vodafone have all struggled through long-running, capital-draining disputes with Indian tax authorities.