Vodafone Income Tax Case Study Summary

Vodafone Income Tax Case Study Summary-89
The Government of India has amended the law to bring the tax into retrospective mode and it signifies the impact of political decisions on business organizations. https://doi.org/10.1108/20450621211298089 Download as . The case can aid in understanding the effects of changes in a political system and legal framework on the efficacy of business entities; and the importance of, and intricacies involved in, the formulation of political risk mitigating strategies while entering into new markets. (2012), "Tax me not: Vodafone's plea to India", Emerald Emerging Markets Case Studies, Vol. Finance Bill 2012 proposes to introduce retrospective amendments to Sec 9, clarifying that indirect transfers were always within its ambit.

The Government of India has amended the law to bring the tax into retrospective mode and it signifies the impact of political decisions on business organizations. https://doi.org/10.1108/20450621211298089 Download as . The case can aid in understanding the effects of changes in a political system and legal framework on the efficacy of business entities; and the importance of, and intricacies involved in, the formulation of political risk mitigating strategies while entering into new markets. (2012), "Tax me not: Vodafone's plea to India", Emerald Emerging Markets Case Studies, Vol. Finance Bill 2012 proposes to introduce retrospective amendments to Sec 9, clarifying that indirect transfers were always within its ambit.

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In a thundering judgment dismissing the Income Tax Department’s jurisdiction over the $18bn deal and virtually reaffirming almost each and every argument advanced by Vodafone counsel Harish Salve, Chief Justice Kapadia has unequivocally called the Hutch – Vodafone deal as one composite transaction and the CGP led structure of Hutchison Telecom as single consolidated bargain.

Hence the Income Tax Department did not have any right to levy tax on the ‘ offshore share sale’ of CGP by Hutchison to Vodafone….

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By using our site, you agree to our collection of information through the use of cookies. Will the apex court finally settle the age old ' tax planning vs tax avoidance' debate?analyses the key Indian and foreign case laws being relied upon by both parties.We bring to you, a summary of the proceedings of 5 Webinars conducted by leading experts, who explained and analyzed the implications of the judgment.Few of the key aspects discussed in these Webinars were; whether the Revenue is likely to file a review petition, whether Justice Radhakrishnan's concurring judgment is of binding nature and whether a retrospective amendment to Section 9 is possible.The billion Vodafone tax saga, which has gripped the attention of the entire tax world for the last 5 years ( and even chambers of businesses across the world over the last month or so ) may finally be close to an “amicable settlement.” Last evening ( May 1), Vodafone CEO Vittorio Colao met Finance Minister Pranab Mukherjee in the presence of senior Finance Ministry and CBDT officials and is learnt to have reiterated the company’s stand against the retrospective amendments to bring Vodafone into the tax net.A senior Finance Ministry Official told Taxsutra on the condition of anonymity that while the Government is favourably pre-disposed towards waiving off the penalty of Rs.One can narrow down the possibilities surrounding the SC ruling into 3 most likely scenarios - An Outright Vodafone win (which means IT Department has no jurisdiction to proceed further in this matter), An Outright IT Department victory (meaning over bn in revenues) or the famous A B theory propounded by Bombay HC (the Cayman share sale is an offshore transaction but there are other valuable rights in India which have been transferred by Hutch to Vodafone and therefore IT Department has jurisdiction).So here are the 10 things to watch out for in the SC judgment, which is likely to be lengthy, comprehensive and where each word will be put under the microscope! SH Kapadia ) and his colleagues on the bench Justice Radhakrishnan and Justice Swatanter Kumar know that whichever way they rule, their judgement is likely to go down in the pages of history as an all time classic.As the judges ponder 'form vs substance', 'situs vs control' and 'Azadi vs Mc Dowell', we bring you the blow by blow account of the dramatic, 26 days marathon proceedings in SC.Both Salve and Nariman are armed with a litany of case laws to bolster their respective claims, but in the end it is likely to boil down to the 2 SC rulings on which Vodafone and IT Department have pinned their hopes - Azadi Bachao Andolan and Mc Dowell.

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