The deal that secured control of Hutchison Essar, India’s fourth largest
mobile group, has landed buyer Vodafone with a $2bn (£989m) tax demand.
The Times reports that Vodafone has received a letter from India’s
Income Tax Department asking for unpaid capital gains tax on the $11.1bn
Vodafone confirmed receipt of the letter, but said it is confident that its
case is strong.
‘We have had clear legal and tax advice that no tax is payable either by
Vodafone Essar or any other member of the Vodafone group and will defend our
position vigorously,’ a spokesman was quoted as saying.
It is understood that under Indian law any transfer of property located in
the country attracts CGT of 22%. This tax normally falls on the seller, but in
the Hutchison Essar case there seems to be some confusion over which body closed
out the deal.
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Government's estimate of a £400m admin saving from Making Tax Digital is way off - and is instead a huge cost burden, warns Lamont Pridmore chief executive Graham Lamont
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year