Indian minister confident of resolving Vodafone tax dispute
January 30, 2013 7:21 PM EST
India's finance minister, P Chidambaram, said he is confident that a more than $2 billion (1.2 billion pounds) tax dispute between Vodafone Group Plc
Vodafone, the largest corporate investor in India, has repeatedly clashed with Indian authorities over taxes since it bought Hutchison Whampoa's <0013.HK> local mobile business in 2007.
"I'm sure some way will emerge out of these discussions. I will be very happy if we could find a resolution to the issue, put it behind us and move on," Chidambaram told Reuters television in an interview in London on Tuesday.
"I think Vodafone is of the same view, so both government and Vodafone are keen to resolve the matter and I am confident we can resolve it," he said.
India's Supreme Court last year in January ruled that the British company was not liable to pay any tax arising out of the 2007 acquisition.
But the Indian government later amended 50-year-old tax laws enabling it to make retroactive tax claims on long-concluded corporate deals, a move which has been heavily criticised.
Indian officials and Vodafone have had two rounds of discussions on the dispute and were expected to have a third round of talks in the next few days, Chidambaram said.
Finance ministry officials have previously said the government may consider waiving off interests and penalty on the original tax demand, however it will prefer to take parliament approval for any such concession.
Chidambaram described Vodafone's case as a "one-off", and said he had "no formula in mind" on resolving the dispute.
" It arose out of an interpretation of an existing law. People have criticised it as applying a law retrospectively," Chidambaram said.
"I don't want to get into an argument over that, but let's resolve it, put it behind us and move on."
(Reporting By Arup Roychoudhury and Costas Pitas; Editing by Simon Cameron-Moore)
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Black Friday 2014 Sale: Top Deals On Game Consoles Xbox One, PS4, Nintendo Wii U And More
- Walmart Pre-Black Friday 2014 Sale On Nov. 21, 2014 Includes Discounts On The 'NBA 2K15' For PS4 And The 'Skylanders Trap Team’ Starter Kit [WATCH VIDEO]
- More Bad News for Android 5.0 Lollipop As Problems Come In for Nexus and Other Devices
- BlackBerry Classic (aka Q20) Keyboard Shortcuts Explained In A Quick Video
- US To Supply Defensive Lethal Weapons To Kiev – A Vey Alarming Signal, Says Russia
- Amazon Black Friday 2014 Deals Start On Nov. 21, 2014 Including Limited-Time Lightning Deals And Deals Of The Day On Clothes, Toys, Jewelry, Watches, Bags, Accessories And Electronics
- Travel Alert: New Delta Air Lines Airbuses Could Be Seen In Australia Soon