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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
One million pensioners are now higher rate taxpayers and it's not just income tax to worry about
Rising state pension payments have pushed more people into higher tax brackets but this could also affect other areas of your finances
-
HMRC slaps pensioners with record high surprise tax bills - do you owe the taxman money?
More than a million people face surprise tax bills by HMRC, including thousands of pensioners, as triple lock pushes more retirees into taxable income brackets