Court rules that Vodafone is not liable for USD2.2bn Indian tax bill

20 Jan 2012

The Associated Press writes that India’s highest court has ruled that UK-based Vodafone Group is not liable to pay up to USD2.2 billion in back taxes and penalties. A lawyer for the British group, Harish Salve, is quoted as saying that the court has published a ‘concurring judgment’ on the matter, and ordered that the deposit on its tax bill be refunded. The ruling in favour of Vodafone will no doubt be a relief to other international investors in India which had feared exposure to a new set of tax costs if Vodafone had failed in its case. In brief, the dispute centred on Vodafone’s USD11 billion purchase of the Indian assets of Hong Kong-based Hutchison Telecommunications in 2007. The UK firm argued (successfully) that it was not liable to pay tax on the deal as the transaction was carried out between two foreign entities.

India,Vodafone Group, Vodafone India,



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