It's fascinating and welcome that India is refusing to take tax lying down now.
I've just noted their aggressive, and I think appropriate, response to Vodafone's tax abuse, which they are tackling with retrospective legislation. This is a country that will no longer tolerate tax abuse via tax havens - and good for them.
Then there's their new general anti-avoidance rule - which is far more comprehensive than the UK dare deliver. This is massively unpopular with the tax abusing class in India - which just goes to prove how much it is needed. Again India is saying you may come and do business here - but the price is paying tax. And they're right to do that.
And now India is taking on the OECD and its anti-developing country position.
This is all very good news indeed - not just for the people of India, but elsewhere too.
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Didn’t the Indian Supreme Court rule that Vodafone did not owe any tax?
Yes
But the decision was defective – it used UK precedents incorrectly so the Indian government over ruled it in the interests of the Indian people
That’s what retrospective taxation does – it rights wrongs
Translation: the Indian government didn’t like the decision so ignored it.
Very worrying in a democracy that the executive can overrule the judiciary.
Very worrying when the judiciary ignore the intention of the law
Those having their cake and eating it should not be surprised when others, probably hungrier, seek to make them regurgitate their excess. About time too!
I quite agree. As well as making Vodafone pay its taxes fairly, the Indian government should teach Vodafone and others who think the same way a lesson by stripping Vodafone of its license at the first opportunity.