No direction to taxmen to reopen Vodafone case

The government has not given any direction to tax authorities to reopen a tax case against Vodafone or similar cases, MoS Finance said SS Palanimanickam on Tuesday.

"The decision to reopening or not reopening a case ... is taken by the assessing officer on the basis of facts and circumstances of each case. The government has not issued any direction in this regard," Palanimanickam told lawmakers in a written reply. India has proposed to amend laws retrospectively to tax some already-completed mergers of foreign companies with Indian assets, potentially putting Vodafone back under the taxman's spotlight for more than USD 2 billion in taxes even after the Supreme Court ruled the tax office did not have jurisdiction over cross-border deals. Palanimanickam also said Vodafone has not approached the government for an out of court settlement for the tax dispute. New Delhi wants to tax the British telecom company over its 2007 acquisition of Hong Kong-based Hutchison Whampoa's mobile operations in India.