Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Vodafone Group plc    VOD   GB00B16GWD56

News SummaryMost relevantAll newsSector newsTweets 

Vodafone Group plc : India May Hit Vodafone With $3.75 Billion Tax Bill After Law Change

share with twitter share with LinkedIn share with facebook
share via e-mail
05/09/2012 | 10:36am CEST

India plans to demand about $3.75 billion in taxes from the Vodafone Group PLC (VOD.LN) if parliament approves a law to retroactively tax overseas mergers which have an underlying Indian asset, a senior official said Wednesday.

The demand will include basic tax of about $1.48 billion, a penalty of a similar amount and interest charges of about $790 million, Mr. R.S. Gujral, secretary at the Department of Revenue in the Ministry of Finance, said on television.

The amount mentioned by Gujral has been talked about for a while now, but this is the first time a senior government official has gone on record to confirm.

The amount is nearly double the $2 billion tax that the government is believed to have demanded earlier.

The case involves Vodafone's $11.2 billion purchase of a majority stake in Hutchison Whampoa Ltd.'s Indian assets in 2007. The British company acted through a Dutch subsidiary while Hutchison Whampoa did the deal using a Cayman Islands unit.

Vodafone says it isn't liable to pay any tax as the deal was conducted overseas, but the government says this argument is flawed as it involves the transfer of assets based in India.

The Supreme Court in January agreed with Vodafone's case.

The tax law change, introduced as part of the Finance Bill in March, is seen by industry experts as sidestepping the Supreme Court ruling.

The bill, which was passed by the lower house of parliament Tuesday, is now awaiting approval by the upper house.

If it is passed and gets presidential approval, it will allow India to tax transactions dating back to 1962.

"Once the Finance Bill is passed, the interest amount [in the Vodafone case] will be updated and then taken forward," Gujral said.

A Vodafone spokesman wasn't immediately available for comment.

--By Mumbai Bureau, Dow Jones Newswires; 91 22 6145 6100; [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
03:03a VODAFONE QATAR : invests QR1bn within 2 years to boost network in Qatar
04/27 VODAFONE : Saviour Balzan files complaint to Vodafone, GO, data protection commi..
04/27 VODAFONE : and Proximus renew strategic partnership agreement for Belgium and Lu..
04/27 VODAFONE : Renews Strategic Partnership With Proximus For Five Years
04/27DJVODAFONE : Proximus Renew Strategic Partnership
04/26 Canadian pension fund CPPIB targets new investment avenues in India
04/26 VODAFONE : UXP Systems Leads TM Forum Catalyst with Industry Leaders to Demonstr..
04/25 VODAFONE : Giving Free 27GB 4G Data To Postpaid Users for 3 Months
04/25 VODAFONE : joins attempt to break two hour marathon barrier
04/25 VODAFONE : Launches unlimited roaming plans for us, uae
More news
Sector news : Wireless Telecommunications Services - NEC
04/27 Comcast profit tops views on subscriber growth, movie hits
04/27 Comcast profit tops views on subscriber growth, movie hits
04/27 WPP posts weak sales growth as contract losses hit ad group
04/27DJMAXIS BERHAD : 1Q Net Profit Down 2.5% On-Year
04/27DJCHINA TELECOM : 1Q Net Profit CNY5.35 Billion
More sector news : Wireless Telecommunications Services - NEC
Financials (€)
Sales 2017 53 576 M
EBIT 2017 2 938 M
Net income 2017 -1 410 M
Debt 2017 32 857 M
Yield 2017 6,08%
P/E ratio 2017 -
P/E ratio 2018 32,68
EV / Sales 2017 1,80x
EV / Sales 2018 1,83x
Capitalization 63 407 M
More Financials
Technical analysis trends VODAFONE GROUP PLC
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 2,71 €
Spread / Average Target 13%
Consensus details
EPS Revisions
More Estimates Revisions
Vittorio Amedeo Colao Chief Executive Officer & Executive Director
Gerard Johannes Kleisterlee Chairman
Nicholas Jonathan Read Group Chief Financial Officer & Executive Director
Johan Wibergh Group Technology Officer
Philip Edward Yea Senior Independent Non-Executive Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
AT&T INC.-6.16%245 587
CHINA MOBILE LTD.1.95%220 008
NTT DOCOMO INC-2.73%90 761
More Results