Cayman Islands

The Supreme Court declined to stay the Bombay High Court judgment against Vodafone of 8 September, giving the Indian tax department four weeks to decide how much Vodafone will have to pay in taxes on its purchase of Hutchison Whampoa’s Indian telecoms subsidiary, reported Bloomberg today. Vodafone may have to pay part of the amount the tax authorities decide on as the next apex court hearing has been fixed for 25 October. The total tax liability could be $2.6bn in a case that could cast doubt also on cross-border takeover tax structures.

The Bombay High Court has held that the Indian tax authorities were correct in assessing Vodafone for its Indian tax liability in the $11bn acquisition of Hutchison Essar.