01 Jun 2010
Vodafone looks likely to be dragged back into the courts over a $2bn (£1.4bn) clash with the Indian tax authorities.
The Indian Income Tax Department has served a new notice on Vodafone that it should have paid the tax on its $11bn acquisition of Hutchison Essar, reported the FT.
The three-year battle had seen the Supreme Court push the case back to the tax department to re-examine the case.
Vodafone insists that the acquisition took place outside India's jurisdiction. It said that the purchase was made by Vodafone International based in Holland, while the seller of the company was based in the Cayman Islands.
The telecoms giant said it was "fully confident" that it would not have to pay tax, and would appeal to the Bombay High Court.
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