The Supreme Court of India said that the Indian tax authorities would determine by October 25 the potential tax liability linked with Vodafone’s 2007 acquisition of Hutchinson Essar for US$11.2bn, according to media reports.
Judges were quoted as saying…
The Supreme Court of India said that the Indian tax authorities would determine by October 25 the potential tax liability linked with Vodafone’s 2007 acquisition of Hutchinson Essar for US$11.2bn, according to media reports.
Judges were quoted as saying that Vodafone will need to pay a part of the liability, estimated at Rs120bn (US$2.6bn), including interest, pending disposal of the case.
A few days ago, the British mobile operator announced that it had filed an appeal to India’s Supreme Court against the liability. This followed an Indian court’s ruling that authorities were allowed to seek a tax bill from Vodafone International, a Dutch subsidiary of Vodafone, on the Essar acquisition.
Recently, Vodafone CEO Vittorio Colao called the decision by Indian authorities to impose the tax bill a negative message about the country.
In a video interview with the Financial Times, he explained that Vodafone should not get punished for creating jobs and deploying assets in India via the acquisition.
