Kevin Reed, Accountancy Age, Monday 2 August 2010 at 09:45:00

Ongoing row between Vodafone and Indian tax authorities a potential discussion point for chancellor George Osborne


A tax row between Vodafone and the Indian tax authorities is expected to be raised by George Osborne during his trip to the country.

A delegation to India including prime minister David Cameron and chancellor George Osborne will look to promote stronger trade links, but it is believed that Osborne will raise an ongoing $2bn (1.3bn) tax row between Vodafone and India during the trip.

The row centres on Vodafone's purchase of Indian telco Hutchison Essar, on which it is claimed Vodafone has withheld $2bn in CGT.

Vodafone argues that the Indian tax authorities cannot make a claim as the deal was between Vodafone Netherlands and Hutchison, which is incorporated in the Cayman Islands.

Osborne has said it was a matter for the Indian courts, reported Tax-News.com.

Further reading:

Vodafone in $4bn court battle over tax