India reportedly preparing to consider tax settlement talks with Vodafone

A multi-billion dollar tax dispute between the Indian administration and mobile phone operator Vodafone may be edging towards a settlement, according to a media report citing sources within the Indian government.

A multi-billion dollar tax dispute between the Indian administration and mobile phone operator Vodafone may be edging towards a settlement, according to a media report citing sources within the Indian government.

News agency Bloomberg reported that an Indian Finance Ministry official with direct knowledge of the matter had claimed India had written to Vodafone saying it was ready for talks to settle the$2.2bn tax dispute.

The Bloomberg report further referenced a second unnamed official speculating that the administration could seek to waive interest and penalties on levies such as Vodafone's case, which arose from changes to tax laws applied retroactively.

On January 6th, Vodafone reportedly stated that no tax was payable after authorities allegedly sent a reminder about the liability, which arose from the 2007 purchase of Hutchinson Whampoa Ltd's Indian assets.

Bloomberg reported that the Supreme Court ruled in January last year that Vodafone wasn't liable and dismissed the government's case. Former Finance minister Pranab Mukherjee amebnded the tax law in March 2012's budget to revive the claim.

Vodafone's share price was up 0.55% to 165.4p at 13:00 on Friday afternoon.

Recommended

Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022