Vodafone Wins India Tax Case
India's Supreme Court ruled that Vodafone Group PLC isn't liable to pay taxes on the deal it struck to enter India in 2007, delivering a major victory to the British telecommunications giant and providing some encouragement to foreign companies that are concerned about the country's investment climate.
Mukesh Butani, Taxand India, said the decision delivered an important critique of India's murky laws in areas such as taxes: "Certainty is an integral part of the rule of law and the government needs to make laws that give a clear picture to investors".
This decision will go a long way in reinforcing investor confidence and will also usher in a regime of greater certainty for international investors.
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First published in Wall Street Journal, 23 January 2012