The Hutch-Vodafone deal took place in 2007 that involved the transfer of shares of a foreign company outside India, which indirectly held the shares of an Indian company.
In one of India's biggest tax controversies, the Tax Authority is demanding approximately US$2.5 billion in capital gains tax from UK-based Vodafone, with additional penalties in a similar range. The Supreme Court's judgement on the matter is expected shortly. This landmark judgement will cover various significant international tax aspects such as tax avoidance, use of tax havens, interpretation of favorable tax treaties, substance over form of a transaction, etc. The outcome of this case is keenly awaited round the globe as it will play a significant role in shaping India's future tax policy. It could also shape the behavior of global investors and cross-border acquirers.
