I’ve just noted their aggressive, and I think appropriate, response to Vodafone’s tax abuse, which they are tackling with retrospective legislation.
Let us just remind ourselves of the Indian Vodafone case. Vodafone bought a telecoms company off one of the Hongs (Hutchinson Whampoa I think?). The underlying assets were Indian, but the actual companies involved were offshore.
Vodafone itself never was charged tax on this matter. If anyone did owe tax then it was Hutchinson. But Indian law has the proviso that if the seller making a profit doesnt pay the tax then the buyer has to pay it for them.
Then, in the Supreme Court, it was decided that India didn\’t have the power to tax this transaction anyway as the actual entities being traded were not Indian. Nowt to do with the Indian taxman then.
But look at what Ritchie calls this: tax abuse. Not paying someone else\’s tax bill, as the Supreme Court says you don\’t have to, is tax abuse?