Feeds

Vodafone manages to fight off £3bn tax bill, claws back cash paid

What happens in India never happened in India

Secure remote control for conventional and virtual desktops

Vodafone's acquisition of Hutchison Essar is not liable to Indian taxation, a court has ruled, as the 2007 transaction took place outside the sub-continent - despite Essar being based there.

Vodafone and Hutchison successfully argued at the Indian Supreme Court that as neither company is headquartered in India they don't have to stump up for local capital-gains tax, which could have hit £3bn once all the various penalties for late payment were included.

So now the Indian government will have to pay back the bonds and guarantees amounting to several hundred million quid which Vodafone was forced to hand over during the four years the case rumbled on.

The Indian tax office reckoned Vodafone should have handed over £1.4bn in capital gains tax before the deal was allowed to go through in 2007, and won a couple of rounds at court before the matter reached the Supreme Court whose ruling is final.

The issue was whether two foreign-owned companies trading an Indian company between them could be liable for Indian tax. Had Vodafone and Hutchinson been Indian companies then Vodafone would have been obliged to deduct the tax from the price paid to Hutch, passing it direct to the government.

The news will settle the minds of companies considering their investment in India, and is being heralded in the international press as a good thing, though the Indian tax authorities might feel differently. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?