Indian tax authority asked Vodafone to pay $2.1B Tax Or Face Asset Seizure. India Government said it may seize Vodafone Group Plc’s assets in the country if the company doesn’t pay a disputed Rs.14,200 crore tax bill that’s still undergoing international arbitration proceedings.
Vodafone has disputed the tax bill levied by Indian authorities over its 2007 purchase of the India business of Hutchison. The telecom giant bought a majority stake in the mobile company from Li Ka Shing Holdings through a subsidiary based in the Netherlands. The $11.2 billion transaction was routed through Cayman Islands, and Vodafone said it did not owe the Indian government any taxes for the deal since it was conducted offshore.
However, the Indian government said it was owed taxes from the deal since it involved the sale of assets within India. After the country’s Supreme Court ruled in Vodafone’s favor in early 2012, the government amended the country’s taxation laws to apply retroactively to transactions like the Vodafone-Hutchison deal. Vodafone has disputed the tax bill it was presented after the law was changed, and began international arbitration proceedings against it in 2014.
Vodafone Group plc is a British multinational telecommunications company headquartered in London and with its registered office in Newbury, Berkshire. Vodafone owns and operates networks in 26 countries and has partner networks in over 50 additional countries.
So lets discuss some question related to this article which can be asked in the upcoming exams :
1. Which company has asked to pay the tax by Indian Tax Authority ?
2. What is the amount of tax which Vodafone have to pay ?