The Income-tax department opened its argument in the Supreme Court on Tuesday in the $2.5 billion Vodafone tax case by characterising the British telco’s deal to buy Hutchison Indian operations as an “artificial tax avoidance contrivance”. Vodafone Group entered India in 2007 through a subsidiary based in the Netherlands, which acquired Hutchison Telecommunications International Ltd’s (HTIL) stake in Hutchison Essar Ltd (HEL) — the joint venture that held and operated telecom licences in India.
India’s new Solicitor-General further said that there was a complete lack of emphasis on the facts of the case in the arguments given by Vodafone’s lawyer. He further stressed on the taxability of the transaction as provided for in the Income-tax Act.
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