An international arbitration panel will hear Vodafone Group PLC's challenge to a $2.1 billion retrospective Indian tax bill in February 2019, The Economic Times of India reported.
The panel, led by British judge Franklin Berman, will listen to objections raised by Indian authorities to tax matters being covered under the Netherlands-India Bilateral Investment Treaty. The treaty was used by Vodafone to set off an arbitration over the tax demands made by India. India has challenged the tribunal's jurisdiction to decide on the matter.
Vodafone and the Indian government are expected to submit their responses in July and December, respectively.
The longstanding dispute started when India chased the British telco giant over unpaid taxes following the 2007 acquisition of a 67% stake by Vodafone in Hutchison Essar, owned at that time by Hutchison Whampoa, now part of CK Hutchison Holdings Ltd.
Vodafone argued it had no pending tax liabilities as the transaction took place offshore, while India argued that Hutchison Essar's assets were inside its territory.
In 2012, the Supreme Court of India ruled in favor of Vodafone. However, the Indian government subsequently amended the Income Tax Act, making offshore transactions taxable retrospectively.
As of May 18, US$1 is equivalent to 68.02 Indian rupees.
