Vodafone's Indian tax battle begins
The courts hear the opening arguments between Vodafone and the tax authorities of $2bn CGT claim
Vodafone’s tax battle with the Indian authorities began yesterday, with
opening arguments heard in the telecoms giant’s attempt to bat away a $2bn
(£1bn) CGT claim.
The Bombay High Court heard Vodafone argue that its purchase of Hutchison
Essar was not taxable under ‘beneficial ownership’ rules in India, as the shares
changed hands in another jurisdiction, reported the FT.
The Indian taxman argues that although Hutchison made the capital gain,
Vodafone should have withheld the tax on its behalf.
The bulk of Hutchison Essar’s assets are in India.