Vodafone Group No Closer to Settling Indian Tax Dispute
Vodafone's tax dispute in India isn't looking like it's going away any time soon.
Following a visit to the country from prime minister David Cameron back in February, India's finance minister Palaniappan Chidambaram had said that the government will seek advice from the Cabinet on its ongoing tax dispute with the telecommunications company, and consider its offer for settlement.
But the Financial Times reports that "little progress has since been made" according to people familiar with the situation, despite Chidambaram previously stating that the matter could be concluded before April's annual budget, and is now "highly unlikely" to be resolved until after India's national election in 2014.
The case dates back to early last year, when the country amended its income tax law to enable reimposition of taxes on overseas deals involving local assets, retrospectively affecting Vodafone's stake in Indian telecommunications company Hutchinson Essar that it took in 2007.
The FT highlighted "a series of legal and political barriers" that have obstructed a deal specific to Vodafone, or a widespread reversal of the controversial income tax law that was brought in, and that India's finance ministry has yet to reply to a letter from Vodafone concerning the case.
As this rolls on, investors' confidence in the country continues to diminish. But if you invest for income and are looking for more security with a company whose interests are closer to home, you may wish to read this exclusive free in-depth report. The FTSE 100 company in question offers a 5.7% income, and might be worth 850 pence versus around 815 pence currently. Just click here to download the report -- it's absolutely free.
The article Vodafone Group No Closer to Settling Indian Tax Dispute originally appeared on Fool.com.Sam Robson owns shares of Vodafone The Motley Fool recommends Vodafone. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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