Vodafone Off Hook For India's $2.5B Tax Bill

Law360, New York (January 20, 2012, 3:47 PM EST) -- U.K. telecommunications giant Vodafone Group PLC will not have to pay $2.5 billion in taxes on its 2007 purchase of Hutchison Whampoa Ltd.'s Indian cellphone business, the Supreme Court of India ruled Friday.

Vodafone had contested the capital gains taxes imposed by Indian tax authorities, who said the purchase, while conducted between foreign companies, involved underlying Indian assets. The tax had been upheld by a lower Indian court, but that decision was overturned by the Supreme Court.

The Supreme Court said the tax would amount to...
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