Vodafone to push ahead with Indian tax arbitration case
LONDON (Reuters) - Britain's Vodafone (VOD.L) said on Thursday it intended to push ahead with international arbitration in its long-running Indian tax dispute, after the government said it would set up a committee to review retrospective tax claims.
Vodafone and India have been locked in a $2.2 billion tax standoff since the British company acquired Hutchison Whampoa's (0013.HK) Indian mobile assets in 2007.
Vodafone thought it had finally secured victory in the case in 2012, when the Supreme Court dismissed the tax demand. But the government responded by announcing retrospective legislation that would change the rules.
Prime Minister Narendra Modi's new government on Thursday unveiled its first budget and said it would review certain claims.
"We note the Finance Minister’s announcement that existing cases arising from the 2012 retrospective tax law should follow the lawful process in which they are currently being adjudicated," the British firm said in response.
"Vodafone will therefore continue the process of international arbitration initiated under the India-Netherlands Bilateral Investment Treaty."
(Reporting by Kate Holton, Editing by Paul Sandle)
- Tweet this
- Share this
- Digg this
- UPDATE 3-U.S. fines Berkshire over stock deal, Buffett admits mistake
- UPDATE 2-UK launches hunt for man with British accent on beheading video
- UPDATE 2-Afghanistan gives NYT reporter 24 hours to leave country
- Islamic State opens new anti-U.S. front with beheading video
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
Addressing India's Infra Needs
The World Bank's private-sector financing arm on Wednesday launched $2.5 billion, rupee-denominated, bonds in the Indian market to fund infrastructure projects, after raising $1 billion in offshore bonds for the sector last year. Full Article