Vodafone Begins Arbitration Against India in Tax Dispute
May 8, 2014 3:04 PM EST
Vodafone Group Plc has begun an international arbitration against the Indian government in a more than $2 billion tax case, toughening its stance in a long-running dispute that has dented foreign investor sentiment.
A man and two passengers ride on a scooter past a shop displaying the Vodafone logo on its shutter in Jammu. Reuters
The British mobile phone operator was widely expected to go for an international arbitration after its talks with the Indian government failed to find a solution last year.
Vodafone, which last month took full ownership of its India unit after buying the 15.5 percent it did not already own, filed for the arbitration on April 17, it said in a statement on Wednesday. It did not give details.
A spokesman for the finance ministry, which was in talks with Vodafone over the dispute, declined immediate comment.
The tax dispute stems from Vodafone's acquisition of Indian mobile assets from Hutchison Whampoa in 2007.
In 2012, the Supreme Court ruled that Vodafone was not liable for payment of any tax on the acquisition. The government later that year changed the rules to enable it to tax deals that had already been concluded.
Uncertainties over policy in India have unsettled investors, and tax claims on foreign companies have been a major concern. IBM Corp, Royal Dutch Shell Plc and Nokia Oyj are among foreign firms contesting local tax claims.
Join the Conversation
- Home Depot Early Black Friday 2014 Sale Up To Nov. 29, 2014 Includes Special Buys On Appliances Such As Samsung Refrigerators, Whirlpool Electric Ranges And Hoover Vacuum Cleaners
- Target Early Black Friday 2014 Sale Ad Released For Nov. 26, 2014 Includes Deals On Toys, HDTVs And Video Games Such As ‘FIFA 15’ And ‘NHL 15’ For Xbox 360 [WATCH VIDEO]
- Kohl's Black Friday 2014 Online Deals Available Now Until Nov. 28, 2014 Including Free Shipping For Orders Worth $50 And More [WATCH VIDEO]
- BHP Billiton To Turn Olympic Dam Mine To World’s 2nd Largest Copper Mine
- A Bearded Man Is Arresting UberX Drivers Across Sydney
- Russia Is Ready for Shooting War, Will Likely Win Looming Nuclear Showdown with U.S. – Report
- Kobani ISIS Fighter Sends Out Desperate Message For Prayers And Support: Euphoria Turns Into Desperation As Kurds Advance
- Chris Algieri’s Battered Face Trends On Social Media
- Microsoft Band Runs Out Of Stock, But Offers $10 Gift Voucher To Wait-Listed Customers
- Black Friday Sale 2014 Deals From Amazon On Smartphones, TVs, Headsets And More
- Andrew Robb Asks Obama Not to ‘Lecture’ Australia on Climate Change