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Friday, January 20, 2012

Vodafone not liable for billion-pound tax penalty in India

VodafoneIndia’s Supreme Court has ruled that Vodafone isn’t liable to pay taxes on its acquisition of Hutchison Essar in 2007. The country’s tax authorities had claimed a total of around £2.8 billion was due in taxes and penalties.

This appeal in the Supreme Court followed a High Court defeat for Vodafone in 2010.

The original deal saw Vodafone’s subsidiary in the Netherlands buying a stake in Hutchison from a Cayman Islands company.

Vodafone has issued a short statement that says “Vodafone Group has received the judgment of the Indian Supreme Court. The Court has concluded that Vodafone had no liability to account for withholding tax on its acquisition of interests in Hutchison Essar Limited (now Vodafone India Limited) in 2007.”

New tax laws in India are expected in 2013; these would make similar transactions taxable within the country.

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Opinion Articles

Ee-ee-ee, says Everything Everywhere

Mark Bridge writes:

Mobile networks have changed, haven’t they?

Once they were all about delivering service. Coverage. Quality. Price. Now it’s much more about branding.

Everything Everywhere has announced it’s to become EE, an obvious abbreviation that’s been used in mobile industry briefings pretty much since the company was created two years ago. It joins the likes of Kentucky Fried Chicken, Hennes & Mauritz, British Home Stores, Independent Television and Marks & Spencer, although all of these took decades to transition into businesses that were just described by their initials.

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Last week at The Fonecast: 10th September 2012

No Amazon smartphone, no Nokia tablet

Mark Bridge writes:

It’s a smartphone autumn, as prophesied a few weeks ago by the Carphone Warehouse and many others. The frenzy of big-name announcements led by Samsung at Berlin’s IFA has given way to stand-alone media presentations from Nokia, Motorola and Amazon.

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With instant-pay apps, wallets can stay home

Ted Landphair of voanews.com writes:

A lot of people gave up carrying much cash a long time ago, since they knew ‘plastic’ - a credit or debit card, or a store or public transit ‘smart card’ - would be accepted just about everywhere.

But to hear tech companies tell it, plastic cards will be museum pieces as well before long.

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Last week at The Fonecast: 27th August 2012

4G gets a boost in the UK, Samsung gets a slap in the USA

Mark Bridge writes:

It was a week of dramatic contrasts in the mobile phone industry. We started with Everything Everywhere’s news that 4G service was coming to the UK this year – possibly with a new brand that’ll work alongside Orange and T-Mobile. Meanwhile Three UK seems to have its own plans that involve acquiring some excess 4G spectrum from Everything Everywhere. There was much muttering from Vodafone and O2, although whether this’ll manifest itself as legal action remains to be seen.

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The Hare and the Tortoise: the race for 4G/LTE in the UK

Robin Kent writes:

With this week’s announcement that Everything Everywhere has been given the green light to launch the UK’s first 4G service, competing operators such as Vodafone and O2 are getting hot under the collar. With every day that goes by, these operators lose vital competitiveness as the market creeps away them towards Orange and T-Mobile. This is a real life ‘hare and tortoise’ scenario.

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