Vodafone may have to pay $2 billion to Indian government for Hutchison Essar acquisition
Vodafone could be looking down the barrel of a $2 billion shotgun, held by the Indian government. You see, Vodafone’s recent acquisition of Hutchison Essar, India’s largest mobile operator might be subject to capital gains taxes - and the Bombay High Court just green-lighted an investigation into whether Vodafone is really is liable for the taxes. Vodafone acquired Hutchison Essar for a righteous sum of $11 billion, and the capital gains made from that deal may require $2 billion in taxes. . The company is arguing that the deal was made between offshore entities (Vodafone and Hong Kong-based Hutchison) and is therefore not subject to taxation. Vodafone is what we’d call a big fish in the wireless pond, so we’re sure they’re not going to go belly-up if they have to pony up the $2 billion. But, that’s still a lot of money to just throw away, and you can be sure that Vodafone will be fighting this tax to the end - after all, it Vodafone was just fined in Greece . [Via: Yahoo ] --- Related Articles at IntoMobile:
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