Vodafone Loses $2 Billion Indian Tax Case December 5, 2008
Posted by aikservices in CDMA, GSM, Hutchisson, Mobile, Nokia, Vodafone, Wireless.Tags: Asia, Essar, Hutchison, India, Mobile, Vodafone, Wireless
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Vodafone has lost a significant tax bill in India after the Bombay High Court upheld a claim by the government for around US$2 billion following its purchase of a majority stake in Hutchison Essar. In a press statement, Vodafone said: “The written order of the court is awaited. However, the court has extended the stay order for eight weeks, preventing the tax authority from proceeding in the case. This will also allow time for Vodafone to review the grounds of the court’s decision, once the written order is received, and file an appeal in the Supreme Court of India.Vodafone, based on advice received, continues to believe that the transaction is not subject to tax in India and is confident of a positive outcome ultimately, it added.
Vodafone had paid US$11.2 billion for a 67 percent stake held by Hutch Telecommunications International in Indian GSM operator Hutchisson-Essar (now Vodafone Essar). Vodafone International Holdings BV, a company registered in the Netherlands, acquired the entire share capital of CGP Investments (Holdings) Ltd, a Cayman Islands based company from Hutchison International (HTIL). CGP, itself, owns 52 per cent stakes in Hutchison India.
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