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Vodafone could be looking down the barrel of a $2 billion shotgun, held by the Indian government. You see, Vodafone’s recent acquisition of Hutchison Essar, India’s largest mobile operator might be subject to capital gains taxes – and the Bombay High Court just green-lighted an investigation into whether Vodafone is really is liable for the taxes.
Vodafone acquired Hutchison Essar for a righteous sum of $11 billion, and the capital gains made from that deal may require $2 billion in taxes. . The company is arguing that the deal was made between offshore entities (Vodafone and Hong Kong-based Hutchison) and is therefore not subject to taxation.
Vodafone is what we’d call a big fish in the wireless pond, so we’re sure they’re not going to go belly-up if they have to pony up the $2 billion. But, that’s still a lot of money to just throw away, and you can be sure that Vodafone will be fighting this tax to the end – after all, it Vodafone was just fined in Greece.
[Via: Yahoo]
About The Author
Will Park
Will hails from The City of Angels - Los Angeles, California. He spends his time playing with his numerous gadgets and looking forward to seeing what future holds for mobile technology. An avid promoter of a fully "digital" life, he promotes the widespread adoption of truly mobile, paper-less living. He dreams of the day when he can go completely digital. No more snail mail, paper receipts, bound books, notepads/spiral notebooks, credit cards, hard currency. He's a digital warrior - fighting for the converged life. He is an idealist and a realist - he has a perfect view of what the world should be but knows that the world is not perfect. Can we ever hope to see Will's dream become reality? We'll see...
