Vodafone has won an international arbitration trial at the Permanent Court of Arbitration in The Hague. As a result, the British Telecom Group does not have to pay billions in Indian tax assets.
Vodafone had been arguing with the Indian tax authorities for years about claims of more than 200 billion rupees in total, converted 2 GBP. These included money that Vodafone would owe in connection with a takeover with which it entered the Indian market more than ten years ago. This process was carried out, among other things, through a subsidiary company in the Netherlands.
A few years ago Vodafone decided to start an international arbitration process. In doing so, the group relied on existing international agreements between India and the Netherlands. The tribunal which has examined the case goes along with Vodafone’s argument and states that India must refrain from bringing any action.