Vodafone wins International Arbitration in 2 MILLION tax case.
NEW DELHI (Reuters): Vodafone won an international arbitration award in a 2 billion tax case against government of India. The International Arbitration Tribunal in Hague ruled that India’s imposition of a tax liability on Vodafone, as well as interest and penalties, were in a breach of an investment treaty agreement between India and the Netherlands. The ruling brings an end to one of the most controversial disputes in India under international treaty agreements that it enters into with countries to protect foreign investments. Vodafone’s tax dispute stems from its $11 billion deal to buy the Indian mobile assets from Hutchison Whampoa in 2007. The government said Vodafone was liable to pay taxes on the acquisition, which the company contested. In 2012, India’s top court ruled in favour of the telecom provider but a law was enacted in the Parliament to allow the country to retrospectively tax deals. Vodafone was represented by Sr. Advocate Harish Salve with a team of lawyers of DMD Advocates.