Vodafone loses out in Indian tax case – Mobile World Live

Vodafone loses out in Indian tax case

08 SEP 2010

Reuters reports that Vodafone Group has lost out in the latest round of its long-running dispute with the Indian authorities, concerning capital gains tax related to its 2007 acquisition of Hutchison Whampoa’s assets in the country to create Vodafone Essar. Vodafone had lodged an appeal arguing that the tax department did not have the authority to rule on tax bills related to cross-border mergers, because the parties involved were based outside of the country. It has been suggested that Vodafone is facing a US$2 billion-plus bill, and that the judgement will have “serious negative repercussions” for future cross-border deals involving the country. Another appeal is now expected.

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