CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. End In Sight For Vodafone's Indian Tax Dispute

End In Sight For Vodafone's Indian Tax Dispute

by Mary Swire, Tax-News.com, Hong Kong

31 January 2013


India's tax authorities are to hold a third rounds of talks with telecoms giant Vodafone in an effort to resolve their protracted dispute, Finance Minister P. Chidambaram confirmed in a series of interviews.

Vodafone appeared to have won its battle in January, 2012, when India's Supreme Court ruled that the company was not liable for a USD2.2bn bill in back taxes and penalties in connection with the acquisition of mobile phone company Hutchinson Essar in 2007. However, the subsequent introduction of the government's controversial Finance Bill raised concerns over whether retrospective changes to the Income Tax Act would allow the government to recover the taxes in question.

In September, Vodafone set aside USD2.2bn for the payment of its Indian tax liabilities, and announced that it could be willing to settle the bill, were any interest and penalty charges waived. Earlier this month, Vodafone confirmed that it had received a "reminder" from the authorities. Although the company re-asserted its claim that no tax is payable on the transaction, it did offer to meet with the government to discuss the matter and find a solution.

Chidambaram told the Financial Times that he was confident that the issue would be resolved, and that he was aiming to settle the dispute within a comparatively short time frame. When asked whether the matter could be dealt with within a month, he replied, "I am trying to resolve it even sooner than that." Chidambaram reiterated the message in a television interview with Reuters, during which he also stressed that Vodafone too is "keen to resolve the matter."

TAGS: compliance | tax | investment | business | tax compliance | India | foreign direct investment (FDI) | ministry of finance | tax authority | multinationals | controlled foreign corporations (CFC) | penalties | telecoms

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 

Log into Tax-News+
Not registered yet? Find out about our daily news alert service »

 Email: 
 Password: 

Login »

Forgotten your password?







Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »