India Seeks to Cancel Vodafone Tax Talks - Memo
February 12, 2014 3:11 PM EST
India plans to withdraw from talks with Vodafone Group Plc to resolve a nearly $2 billion tax dispute after the British operator pushed for the inclusion of a separate tax case in the talks, according to an internal government note seen by Reuters.
A woman walks past a large logo of Vodafone displayed on a shop in Mumbai May 20, 2010.
The finance ministry plans to seek the cabinet's approval to withdraw the conciliation proceedings, the note said. Vodafone (VOD.L) wanted a transfer pricing dispute involving one of its units to be made part of the talks, it said.
Withdrawal of the conciliation proceedings could mean the tax office raising a fresh demand on Vodafone.
"The matter related to Vodafone will be taken to the cabinet, and the cabinet will take a final decision," D.S. Malik, a finance ministry spokesman, told Reuters, declining to share specifics of the proposal.
A Vodafone spokesman in London declined to comment.
The world's second-largest mobile operator, which entered India in 2007 by acquiring Hutchison Whampoa's mobile phone assets, has been contesting a tax bill of about 112 billion rupees over the acquisition.
The Supreme Court ruled in 2012 that Vodafone was not liable to pay any tax over the transaction, but the government changed rules that allowed it to make retroactive tax claims on already-concluded deals, drawing criticism from business groups.
The cabinet in June last year approved a proposal to start conciliation talks with Vodafone over the tax dispute. While formal talks are yet to begin, Vodafone and the government officials had a series of meetings last year.
Vodafone is separately contesting disputes arising out of the so-called transfer pricing deals involving its unit Vodafone India Services Private Ltd. Indian tax office had asked Vodafone to pay about $600 million in the dispute, before the demand was halted by a court.
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
Join the Conversation
- MH370 Search Efforts Not Affected by MH17 Recovery; Australia Still Committed to Solving Mystery
- Another Aviation Disaster: Taiwan Plane Crashes, Passengers Aboard Feared Dead [PHOTO]
- 'Dronies' to Become Latest Trend as Tourism New Zealand Buys Drone to Record Tourists' Videos
- Former Destiny’s Child Star Farrah Franklin Arrested
- Asylum Seeker Women in Australia-Run Christmas Island Attempt Suicide in Desperation
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- HTC Google Nexus 8 Release Date Imminent with New Nexus 7 Deals, Two New Tablets Soon
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales