Vodafone Tax Scandal
What is the
first thing that you are reminded of whenever you read the name Vodafone? Is it
the cute pug dog? It is the Zoozoo advertisements you see during IPL matches?
Is it the last debate you had with your friend regarding the never-ending
battle of Vodafone v/s Airtel? Well, the answer may be anything for you. But
for the Indian government, it is surely the Vodafone tax scandal. It was a long
controversy that kept going on and on. However, don’t worry about reading too
much ahead. We have tried our best to make it pretty simple for your
understanding and knowledge. Read ahead to know the details in the most
interesting manner ever.
When Vodafone The Scam Started
It all
started off in 2007. Yeah, that’s long back. Actually, more than 10 years ago.
That was the year when Vodafone International Holdings BV decided that they
would venture into India. But, how would they do so? That is when your favorite
pug marked Hutch came into the picture. This means that Vodafone International
Holdings BV purchased Hutchison Essar.
What followed next was hat the
subsidiary transacted cash for shares with a similar holding company in the
Cayman Islands.
Note that this happened beyond the boundaries of India and
actually at quite some distant. So, it is very simple now for you to put two
and two together and make four. The result was that the Indian tax authorities
had nothing to say, do or claim because it was just out of their premises.
Supreme Court's Stand
Though the
Supreme Court was fine with this deal, the Indian government was clearly not.
This is actually obvious, isn’t it? All that the authorities and officials of
the Indian government could see, understand and perceive was that there were
losing out on huge revenue. This is when they thought that they cannot just sit
still and will actually have to do something. Thus, came into existence the
General Anti-Avoidance Rule. In short, it is referred to as GAAR.
Now, you must
be wondering that what is this GAAR? It was actually a rule which specified
that the government had the right to dig up the past. The reference was to past
deals. Also, the extent was to as distant as 1962.
Definitely, this did not go
down too well with Vodafone and other companies as well. This why there was a
great uproar on a national scale. Enterprises all over the subcontinent had
something or the other to say.
Implementation of GAAR
The
implementation of GAAR was postponed till 2016. However, even then the tax
seekers were not at peace.
All they cared about was their way to make extra
bucks and fill their pockets. That is anyway not shocking at all since there
are so many scandals and corruption charges against a number of ministers and
influential people of the nation.
Last but not the least, this information is
of relevance to the public because if you are an investor or planning to invest
in a company, then you must be aware of their dues.
Tags: Telecom Scam, Tax Scam, Vodafone, Corporate Scam, Vodafone International
See also:
Ponzi Scam
Ponzi Scam
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