Vodafone Group Plc has won an international arbitration case against the Indian government in a $2 billion tax dispute, two sources with direct knowledge of the matter said.
FILE PHOTO: A man checks his mobile phone next to a Vodafone logo at the Mobile World Congress in Barcelona, Spain, February 28, 2018. REUTERS/Sergio Perezhas won an international arbitration case against the Indian government in a $2 billion tax dispute, two sources with direct knowledge of the matter said.
An international arbitration tribunal in The Hague ruled that India’s imposition of a tax liability on Vodafone, as well as interest and penalties, were in a breach of an investment treaty agreement between India and the Netherlands, one of the sources said. The tribunal, in its ruling, said the government must cease seeking the dues from Vodafone and should also pay 4.3 million pounds to the company as partial compensation for its legal costs, the source said.The tax dispute stems from Vodafone’s acquisition of the Indian mobile assets from Hutchison Whampoa in 2007. The government said Vodafone was liable to pay taxes on the acquisition, which the company contested.
In 2012, India’s top court ruled in favour of the telecom provider but the government later that year changed the rules to enable it to tax deals that had already been concluded.India is entangled in more than a dozen international arbitration cases against companies, including Cairn Energy , over retrospective tax claims and cancellation of contracts. The exchequer could end up paying billions of dollars in damages if it loses.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Auction of Vin Scully's memorabilia tops $2 millionItems from the personal collection of Hall of Fame broadcaster Vin Scully sold at auction for over $2 million, including World Series rings from the Dodgers' championships in 1955 and 1988.
Read more »
Scripps to Buy ION Media in $2.65B DealThe deal is being financed in part by Warren Buffett's Berkshire Hathaway, which will make a $600 million preferred equity investment in Scripps.
Read more »
E.W. Scripps Buys ION Media For $2.65B, With Berkshire Hathaway InvestmentLocal TV station owner E.W. Scripps said it will pay $2.65 billion to acquire national broadcast network ION Media, with Warren Buffett’s Berkshire Hathaway putting $600 million into the deal…
Read more »
Singapore's Wilmar unit to raise $2 billion in China IPOSingapore agribusiness Wilmar International said on Thursday its China business, Yihai Kerry Arawana (YKA), was set to raise 13.9 billion yuan ($2.06 billion) in its proposed initial pubic offering.
Read more »
Burger King is selling a shocking amount of food for just $2 with its Snack Box deal - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
EU appeals against Apple ruling in $15 billion tax battleThe battle between the EU and Apple on taxation is not over yet.
Read more »