Feeds

Vodafone fights India's retrospective tax grab

Law change may force telco to cough up

Top three mobile application threats

Vodafone is asking for international arbitration on its claim that the Indian government's attempt to retrospectively apply changes in tax law is illegal.

The law concerned would, if it were retrospectively applied, cost Vodafone dearly as it managed to avoid paying capital gains tax of £1.4bn on its acquisition of Hutchison Essar. Vodafone argues that it would also be in breach of the India/Netherlands Bilateral Investment Treaty, which guarantees fair treatment of investors.

Vodafone acquired Hutchison Essar back in 2007, and for the following four years the company fought the Indian government on the payment of tax on the transaction. Hutchison Essar is an Indian operation, but as neither Hutchinson nor Vodafone are Indian companies they aren't liable for Indian tax, a situation which was clarified by the Indian Supreme Court in January.

Having discovered that it's not legally entitled to the money, the Indian government has set about changing the law with the Indian Finance Bill 2012, with a view to retroactively applying it to Vodafone and thus getting the cash.

Vodafone is a UK company, but its international operations stay with a holding company in the Netherlands, so it's the India/Netherlands treaty which is being tested. That treaty requires that both parties protect investors in their respective countries reasonably, and that they do "not breach [their] legitimate expectations".

So far Vodafone has just filed a Notice of Dispute, which is very much the first step on the road towards arbitration, but it's a fight that most people thought had ended with the Supreme Court ruling in January.

The money involved has more than doubled since the dispute started, thanks to late payment penalties, and it seems that the fight over it will continue for while yet. ®

3 Big data security analytics techniques

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.