‘Vodafone has taken the first step towards a negotiated settlement over its $2.2 billion tax dispute in India. The company said yesterday that it was considering putting money aside to settle the case that has overshadowed its investment in the world’s second-largest mobile phone market.
‘The British group was exonerated by India’s Supreme Court in January in a dispute over unpaid capital gains tax, only to be targeted by the government with retrospective changes in foreign takeover law designed to claw back tax on its acquisition of Hutchison’s Indian operations in 2007.
‘Andy Halford, Vodafone’s chief financial officer, said that “the situation has changed” and the company was examining the option of reaching a settlement. He added that India was making “more conciliatory noises” on the total amount Vodafone might have to pay to end the dispute.’
‘Vodafone has taken the first step towards a negotiated settlement over its $2.2 billion tax dispute in India. The company said yesterday that it was considering putting money aside to settle the case that has overshadowed its investment in the world’s second-largest mobile phone market.
‘The British group was exonerated by India’s Supreme Court in January in a dispute over unpaid capital gains tax, only to be targeted by the government with retrospective changes in foreign takeover law designed to claw back tax on its acquisition of Hutchison’s Indian operations in 2007.
‘Andy Halford, Vodafone’s chief financial officer, said that “the situation has changed” and the company was examining the option of reaching a settlement. He added that India was making “more conciliatory noises” on the total amount Vodafone might have to pay to end the dispute.’
