Indian tax officials reopen talks with Vodafone

Government officials from India's tax department have invited executives of Vodafone to discuss the telecom giant's tax dispute in which the government has demanded more than $2.2bn (£1.4bn) in taxes.

The global mobile-phone operator has been embroiled in a legal spat with the Indian tax authorities, seeking tax for Vodafone's purchase of Indian interests of Hong Kong-based Hutchison Group through a Cayman Islands holding company in 2007. At the time the deal cost $11.2bn (£6.9bn).

In the latest developments, India's financial ministry have confirmed that revenue secretary Sumit Bose and the chairman of the country's Central Board of Direct Taxes, Poonam Kishore Saxena, intend to meet with Vodafone representatives.

Vodafone shares took a knock late last year when the company revealed it may have to consider making a provision to offset its potential tax bill in India.

Vodafone did not respond for requests to comment, the Wall Street Journal reported.

Penny Sukhraj | Content editor, Accountancy - (up to 2016)

Penny Sukhraj, former content editor and writer for Accountancy and Accountancy Live, responsible for commissioning and editing news...

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