Vodafone has hinted that it may pay about $2 billion in tax for purchasing a majority stake in Hutchison in 2007 to end the dispute with the income tax department, say news reports. The company has, however, said that this may have a backlash on Indian companies who perform similar transactions overseas.
According to Marten Pieters, CEO and MD, Vodafone Essar, if the operator was offered a compromise in this regard, it would probably accept it. He however asserted that there was no case for levying tax on a deal that was done outside the country.
Prior to this, the income tax department had asked the company to pay about $2 billion for purchasing a majority stake in Hutchison in 2007 for over $11 billion.
The British company had challenged the decision and the issue is pending in the Supreme Court. It has already deposited some amount to the court, pending the decision.
