Gosh, isn\’t this interesting?
Vodafone has won a landmark tax dispute in India over its $11bn acquisition of a 67pc stake in Hutchison Whampoa\’s Indian mobile unit, which later became Vodafone Essar.
Another Private Eye/Ritchie nonsense ground into the dust.
The Indian Supreme Court ruled that the taxman had no jurisdiction over the British mobile operator\’s acquisition.
India\’s tax office said Vodafone was liable for $2.5bn (£1.3bn) in tax because most of the assets from the deal were based in India and under local tax law, buyers have to withhold capital gains tax liabilities and pay them to the government.
Vodafone has consistently protested against the tax bill on the grounds that the 2007 deal was between two overseas companies, that the tax was applied retrospectively, and capital gains tax is usually applied to the acquired company, not the buyer.
There was no tax evasion, there was no tax avoidance. This is the Supreme Court we\’re talking about, the arbiter of what actually is the law in that land.
This was entire and pure tax compliance, every rupee that Vodafone should have paid in tax Vodafone did pay in tax.
I look forward to this judgement being popularised by those who first raised it, don\’t you?