Indian Government Looking for Settlement in Vodafone Tax Dispute
Published on: 10th Jan 2013
Note -- this news article is more than a year old.
India's Finance Ministry is trying to work towards an amicable settlement in its long running tax dispute with Vodafone, which has been threatened to go to international arbitration.
Vodafone is facing a tax demand for around USD2.2 billion despite wining a court case saying that the debate was invalid as the government later retrospectively changed the tax laws.
"The government is constantly addressing concerns of investors. There will be amicable resolution of the issue in the Budget," a top Finance Ministry official told the Business Line newspaper.
That the government might seek a settlement is not a surprise as it has hinted at such ever since the retrospective change in tax laws worried foreign investors and some governments.
Following the concerns, the government appointed a committee to review the tax changes, and the newspaper quote now hints that the law change may be reversed, even if only in part.
Vodafone was recently served with a formal notice for the tax demand, although tellingly the demand didn't have a payment date, which raised the possibility of a settlement being discussed.
On the web: The Business Line