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    Voda Idea shares jump nearly 15% as Vodafone wins retro tax case in Hague

    Synopsis

    ​The Permanent Court of Arbitration in Hague ruled in favour of Vodafone, and the court ruling held Indian tax department in breach of fair treatment doctrine.

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    In 2016, Vodafone had moved the International Court of Justice (ICJ) due to a lack of consensus between the parties' arbitrators in finalising a judge for the tax dispute.

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    MUMBAI: Shares of Vodafone Idea jumped nearly 15 per cent after Vodafone won an arbitration case against the Indian government over retrospective tax demand for around Rs 20,000 crore.

    Vodafone Idea shares ended the day at Rs 10.36 with a gain of 13.6 per cent or Rs 1.24, while benchmark Sensex settled at 37,388, up 2.28 percent or 835 points.

    The Permanent Court of Arbitration in Hague ruled in favour of Vodafone, and the court ruling held Indian tax department in breach of fair treatment doctrine.

    Vodafone had used the Netherlands-India Bilateral Investment Treaty to trigger an arbitration over India using the 2012 legislation that gave it powers to retrospective tax deals like its $11-billion acquisition of 67 per cent stake in the mobile phone business owned by Hutchison Whampoa in 2007.

    In 2016, Vodafone had moved the International Court of Justice (ICJ) due to a lack of consensus between the parties' arbitrators in finalising a judge for the tax dispute. It had challenged the demand of Rs 7,990 crore in capital gains taxes (Rs 22,100 crore after including interest and penalty) under the treaty.

    Vodafone shares have dropped 9.41 per cent over last one week, but have rallied 66 per cent for the year to date.
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