Indian court upholds big tax bill against Vodafone
Legal World
In a landmark ruling Wednesday, an Indian court said Vodafone Group Plc is liable for an estimated $2.6 billion in taxes for its 2007 acquisition of one of India's largest mobile phone companies.
The decision sets a precedent that could impact hundreds of foreign transactions and have a chilling effect on foreign investment, tax experts say.
"We will very seriously consider an appeal," a Vodafone executive said Wednesday after the verdict.
The Bombay High Court said Vodafone won't have to pay any tax for at least eight weeks, while it considers an appeal to the Supreme Court, the nation's highest court. The tax amount due is also up for negotiation.
"We expect them to pay the tax unless the Supreme Court stays it," Tax Department attorney B.M. Chatterjee told The Associated Press after the verdict.
In May 2007, Vodafone International Holdings BV — a Dutch subsidiary of the British telecom giant — acquired a 67 percent stake in CGP Investments Ltd., a Cayman Islands company, which held the India telecom assets of Hong Kong's Hutchison Telecommunications International Ltd.
Vodafone maintains that it did not owe tax on the $11 billion transaction because it took place between two foreign entities.
Related listings
-
French Court Endorses eBay-Louis Vuitton Ruling
Legal World 09/07/2010The Paris Court of Appeal confirmed that eBay was liable for a counterfeiting conviction for selling on its website imitation Louis Vuitton Moet Hennessey (LVMH) products between 2001 and 2006.EBay’s actions were in violation of the authorized select...
-
EU court exempts Inuit hunters from seal ban
Legal World 08/20/2010The European Union's high court temporarily exempted Inuit hunters in Canada and Greenland on Friday from the bloc's new trade ban on seal products, while asking European Parliament and EU governments to justify the ban.Indigenous people had argued t...
-
Mexico supreme court upholds gay adoptions
Legal World 08/17/2010Mexico's Supreme Court voted Monday to uphold a Mexico City law allowing adoptions by same-sex couples.The justices voted 9-2 against challenges presented by federal prosecutors and others who had argued the law fails to protect adoptive children aga...
New Rochelle, New York Personal Injury Lawyers
If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.