Vodafone Group plc : Vodafone Mulls Provision for $2.2 Billion India Tax Bill
09/16/2012| 08:46pm US/Eastern
Vodafone Group Plc (VOD.LN), which has resisted setting aside money for a $2.2 billion tax bill in India, may make a provision to cover the legal risks, Bloomberg News reported Monday citing Chief Financial Officer Andy Halford.
Vodafone is consulting on the need for a provision after an amendment by India's government to its tax law made the company potentially liable for the payment, Mr. Halford said in the report. A decision will be made by November, he said.
The mobile-phone operator in January defeated the initial government demand for taxes stemming from its 2007 acquisition of Hutchison Whampoa Ltd.'s Indian operations in the country's top court.
"The situation has changed and we are looking at it," Mr. Halford said in the report. The company's test over whether to take a provision "is now being applied differently against a recently introduced, albeit retrospective, legislation."
Full story: http://www.bloomberg.com/news/2012-09-16/vodafone-considers-2-2-billion-india-provision-after-law-change.html
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