New law to protect foreign investors to exclude tax demands; move to upgrade investment climate: Report
The bill also attempts to upgrade the investment climate and boost foreign investment by setting up new adjudicating authorities to swiftly resolve disputes.
The tribunal headed by Sir Franklin Berman was constituted in June 2016 after Vodafone challenged India using a 2012 legislation that gave it powers to retrospectively tax deals like Vodafone's $11-billion acquisition of 67 percent stake in the mobile-phone business owned by Hutchison Whampoa in 2007.
Government has fixed December 31, 2016 as the deadline for companies like Vodafone and Cairn Energy Plc to settle their retrospective tax disputes. The one-time offer to settle tax issues by waiving of interest and penalty, if the companies paid up the principal tax amount, had opened on June 1 this year.
British telecom giant Vodafone is believed to have moved the Hague-based International Court of Justice (ICJ) seeking appointment of a judge to preside over a arbitration over its Rs 14,200-crore tax case.
Tax terrorism, which has already taken a toll on investor sentiment, seems to be returning to haunt the multinational companies in India.
The dispute is over tax liability arising out of Vodafone's 2007 purchase of Hutchison Whampoa Ltd's Indian assets.
Hutchison already operates the Three Mobile network in Britain, and buying second-ranked O2 will make it the biggest operator in the country.
The last date for finalising the name of third arbitrator in the Vodafone case dispute is September 17.<br />
Today, my thoughts went to the death of the brand that they bought over, Loop Mobile.
It's the first time a government official has confirmed the figure which is nearly double the $2 billion tax that the government demanded earlier.