Vodafone may invoke India-Netherlands treaty in tax case: Report
Mumbai: Vodafone Group PLC which may have to pay more than USD 2 billion in taxes on a 2007 acquisition if the parliament passes a law change-- could invoke the terms of an India-Netherlands treaty to get compensation from Indian government.
This is because the UK company's USD 11.2 billion acquisition of a nearly 67 percent stake in Indian mobile operator Hutch Essar from Hong Kong-based Hutchison Telecom was conducted through a Netherlands-based unit, a daily business newspaper reported Friday, citing an unidentified person it said is aware of the matter.
It didn't give details of the pact.
In its Budget in March, the government proposed a change in the law which would override an Indian Supreme Court ruling in January which said that Vodafone isn't liable to pay the tax because the deal was done between two foreign entities overseas.
A Vodafone spokesman told the newspaper that the group is "urgently considering a number of courses of action, both in India and internationally," but it didn't give details.