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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020