UK mobile operator Vodafone was in Bombay High Court yesterday fighting a reported US$2bn tax bill over its acquisition of Indian mobile business Hutchison Essar. Lawyer Harish Salve, acting on behalf of Vodafone, argued that the company’s subsidiaries…
UK mobile operator Vodafone was in Bombay High Court yesterday fighting a reported US$2bn tax bill over its acquisition of Indian mobile business Hutchison Essar.
Lawyer Harish Salve, acting on behalf of Vodafone, argued that the company’s subsidiaries in Mauritius and the Cayman Islands, where the stake changed hands, were fully functional companies, reported The Economic Times India.
The report added Salve also claimed that, because India has a double taxation treaty with Mauritius, investments made in India from the country are not subject to tax.
Vodafone acquired 67% of the group, now called Vodafone Essar, from Hong-Kong-based conglomerate Hutchison Whampoa in 2007.
The company, which did not return calls before press time, is also widely reported to be preparing an IPO for its stake in Vodafone Essar.
Vodafone fights Hutchison Essar tax bill in Bombay High Court
UK mobile operator Vodafone was in Bombay High Court yesterday fighting a reported US$2bn tax bill over its acquisition of Indian mobile business Hutchison Essar.
Lawyer Harish Salve, acting on behalf of Vodafone, argued that the company’s subsidiaries in Mauritius and the Cayman Islands, where the stake changed hands, were fully functional companies, reported The Economic Times India.
The report added Salve also claimed that, because India has a double taxation treaty with Mauritius, investments made in India from the country are not subject to tax.
Vodafone acquired 67% of the group, now called Vodafone Essar, from Hong-Kong-based conglomerate Hutchison Whampoa in 2007.
The company, which did not return calls before press time, is also widely reported to be preparing an IPO for its stake in Vodafone Essar.
