Vodafone Wins Tax Case in India
08 Ottobre 2015 - 05:40PM
Dow Jones News
NEW DELHI—Vodafone Group PLC won another big tax battle in India
as a local court ruled Thursday that it didn't owe potentially
hundreds of millions of dollars in back taxes.
The Bombay High Court rejected government claims that Vodafone
had avoided taxes connected to alleged share transfers and service
transactions with an outsourcing arm in India.
Indian tax authorities were trying to increase Vodafone's
taxable income by 85 billion rupees ($1.3 billion) in the case,
which is one of many in India that Vodafone has been struggling
with for years. Vodafone estimates the case could have added more
than $600 million to its tax bill.
Thursday's ruling followed a similar victory late last year in
which the same court threw out a transfer pricing case against
Vodafone. New Delhi's decision not to appeal that case was seen as
a sign that India is trying to rein in its tax authorities whom
critics say can be heavy handed and unpredictable.
A Vodafone India spokesman welcomed the ruling. An official in
India's finance ministry said the government would examine the
order before deciding whether to appeal.
The latest ruling does not affect Vodafone's battle with the
Indian government over a $2 billion tax bill related its 2007
purchase of Hutchison Whampoa Ltd.'s India assets. That case is
headed to international arbitration.
Vodafone's high-profile cases have often been cited as an
example of foreign firms being harassed in India and as a reason
that India doesn't attract more investment.
Other international companies—including HSBC Holdings PLC,
General Electric Co. and AT&T Inc.—have also made big bets on
India only to end up fighting with tax authorities over surprise
tax bills.
Shell also won a long-pending case late last year connected to a
2009 transfer of shares from an Indian unit to the parent company.
New Delhi said it wouldn't appeal that case either.
Companies and investors have complained for years that their
bets on India's growth story have been hamstrung by these long
court battles.
When Indian Prime Minister Narendra Modi came to power last year
his party promised an end to this practice, calling it "tax
terrorism."
Shefali Anand and Rajesh Roy contributed to this article.
Write to Sean McLain at sean.mclain@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 08, 2015 11:25 ET (15:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Grafico Azioni Vodafone (LSE:VOD)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Vodafone (LSE:VOD)
Storico
Da Mar 2023 a Mar 2024