Vodafone in line for $2bn Indian tax bill
Telecoms giant may have to pay $2bn in capital gains tax to the Indian authorities
Indian tax authorities could hit telecoms giant Vodafone with an $2bn
(£1.3bn)tax bill, in the latest twist of a marathon legal battle concerning one
of its acquisitions.
The FTSE100 heavyweight bought a controlling stake in the Indian mobile phone
operator Hutchison Essar through one of its Dutch subsidiaries.
The Vodafone-controlled Dutch company then paid $11bn into a Cayman
Islands-based company owned by the seller, Hutchison Whampoa.
However the Indian tax authorities believed Vodafone should have paid capital
gains on the deal.
Vodafone is expected to appeal the decision. Des Webb, Vodafone’s global tax
executive told the FT. We continue to believe strongly that this transaction is
not taxable in India and will continue to defend our position.”
Further reading:
Osborne
to discuss Vodafone row with Indian authorities