Big Relief For Vodafone; Wins Rs. 20,000 Crore Retrospective Case Dispute

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Vodafone finally has some relief from the Permanent Court of Arbitration in Hague as it has won the case against the tax department. As per the arbitration case, Indian tax agencies want an operator to pay Rs. 20,000 crore on a retrospective basis.

 Vodafone Wins Rs. 20,000 Crore Retrospective Case Dispute

 

The international court on Friday said that this is a breach of fair and equitable treatment of the treaty between both the countries (India and the Netherland). In fact, the merged entity has also confirmed that development and said, "The award is confidential, but Vodafone can confirm that the tribunal has found in Vodafone's favor," the Vodafone Group said. "We are studying the lengthy documents and can make no further comment at this time," the operator added.

In 2016, the operator had asked the International Court of Justice to settle the tax dispute. Meanwhile, the Finance Ministry of India has announced that it is also going through the award.

"The Government will be studying the award and all its aspects carefully in consultation with our counsels. After such consultations, the Government will consider all options and make a decision on the further course of action including legal remedies before appropriate fora," Ministry said.

Everything You Should Know About Retrospective Tax

The retrospective taxations allow any country to ask tax on certain items, deals, and services. It allows that country to charge any company for any past transactions. If we talk about countries where companies have to pay this tax, the list includes Canada, Belgium, Australia, Italy, the US, the United Kingdom, and the Netherlands.

For the unaware, this is a 13-year-old case, where Vodafone bought a 68 percent stake in Hutchison. The company invested $11 billion for buying that much stake. However, in 2009, the government said that the deal comes under the same tax deduction.

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