Vodafone case: UK seeks clarity in tax laws
20 January 2011
With British telecom major Vodafone PLC being entangled in a tax dispute in India, the UK on Wednesday asked India to provide a stable taxation regime and said it is looking for "good" outcome from courts.
Emerging from a meeting with commerce minister Anand Sharma, UK business secretary Vince Cable when asked about his views on Vodafone issue said, "We have talked about it, but it is a matter for the courts in the first instance.
"I think we must acknowledge that Vodafone is an important company in India, its joint venture is one of the most rapidly growing, and like other foreign investors, it needs to have stability in the tax regime. We discussed this in a very amicable way. I think we look forward to a good outcome."
Vodafone is contesting an over Rs11,200-crore claim by the income tax department. The case relates to Vodafone's purchase of 67 per cent of Hong Kong-based Hutchison's stake in Hutchison Essar for $11.2-billion through a Cayman Islands entity in 2007.