Vodafone Threatens India With Arbitration Over Tax Issue

 　　The British mobile service Vodafone has threatened the Indian government with international arbitration¹ over a proposal that could make it liable for billions of dollars of taxes. Pressure is mounting on India to reconsider the proposal, which foreign investors³ say will deter⁴ investment in Asia’s third largest economy.

　　Vodafone tax case

　　Vodafone’s "notice of dispute" served to the Indian government this week, April 17, concerns a controversial proposal to levy⁵ retroactive taxes on any overseas acquisition of an Indian asset made since 1962.

　　The tax proposal was made last month after the Supreme⁶ Court ruled that Vodafone was not liable to pay a $ 2.2. billion tax demanded by the government for acquiring Indian mobile assets in 2007.

　　The ruling was hailed as a victory for foreign investors.

　　But the government’s tax proposal, if passed, will effectively reverse Vodafone’s legal victory and allow India to levy the tax.

　　Vodafone, which is India’s largest foreign investor², says the new tax legislation violates international legal protections granted to foreign investors in the country.

　　Perils⁷ for foreign corporations

　　Vodafone’s case has come to symbolize⁸ the perils foreign corporations face in India. Investors have expressed concern that the legal decision can be overturned.

　　A prominent tax lawyer in New Delhi, Mukesh Butani, says overriding⁹ a court decision introduces a lot of uncertainty¹⁰ about doing business in India.

　　"This has thrown open the entire debate with applicability of law. Clearly we have a challenge and there is an issue with respect to the rule of law and I personally feel there is a credibility issue so far as our judicial¹¹ system is concerned," said  Butani.

　　Foreign investors are also concerned that the tax proposal could affect hundreds of corporate¹² transactions going back 40 years.

　　The government has tried to calm such fears. Indian authorities say the tax proposal will only affect transactions done in the last six years. They say it is meant to ensure that investors do not use tax havens¹³ to avoid paying taxes on profits earned by investing in India.

　　Concern among foreign investors

　　But this has failed to assure foreign investors. A global tax group and international industry groups representing more than 250,000 companies wrote to the Indian prime minister earlier this month warning that some members are re-evaluating their investments due to increasing levels of controversy¹⁴ and uncertainty regarding taxation¹⁵ in India. These bodies represent some of the world’s largest companies such as General Electric.

　　Many are concerned the new proposal will dim the allure¹⁶ of India at a time when its economy is slowing and economic reforms have virtually stalled.

　　"The climate seems much more uncertain today than it was some time ago," said Rajiv Kumar who heads of the Federation¹⁷ of Indian Chambers¹⁸ of Commerce and Industry.

　　The proposed tax measure will be discussed when parliament convenes¹⁹ later this month.

1 arbitration   

n.调停，仲裁

参考例句：

• The wage disagreement is under arbitration.工资纠纷正在仲裁中。
• Both sides have agreed that the arbitration will be binding.双方都赞同仲裁具有约束力。

2 investor   

n.投资者，投资人

参考例句：

• My nephew is a cautious investor.我侄子是个小心谨慎的投资者。
• The investor believes that his investment will pay off handsomely soon.这个投资者相信他的投资不久会有相当大的收益。

3 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

4 deter   

vt.阻止，使不敢，吓住

参考例句：

• Failure did not deter us from trying it again.失败并没有能阻挡我们再次进行试验。
• Dogs can deter unwelcome intruders.狗能够阻拦不受欢迎的闯入者。

5 levy   

n.征收税或其他款项，征收额

参考例句：

• They levy a tax on him.他们向他征税。
• A direct food levy was imposed by the local government.地方政府征收了食品税。

6 supreme   

adj.极度的，最重要的；至高的，最高的

参考例句：

• It was the supreme moment in his life.那是他一生中最重要的时刻。
• He handed up the indictment to the supreme court.他把起诉书送交最高法院。

7 perils   

极大危险( peril的名词复数 )； 危险的事（或环境）

参考例句：

• The commander bade his men be undaunted in the face of perils. 指挥员命令他的战士要临危不惧。
• With how many more perils and disasters would he load himself? 他还要再冒多少风险和遭受多少灾难？

8 symbolize   

vt.作为...的象征，用符号代表

参考例句：

• Easter eggs symbolize the renewal of life.复活蛋象征新生。
• Dolphins symbolize the breath of life.海豚象征着生命的气息。

9 overriding   

a.最主要的

参考例句：

• Development is of overriding importance. 发展是硬道理
• My overriding concern is to raise the standards of state education. 我最关心的是提高国民教育水平。

10 uncertainty   

n.易变，靠不住，不确知，不确定的事物

参考例句：

• Her comments will add to the uncertainty of the situation.她的批评将会使局势更加不稳定。
• After six weeks of uncertainty,the strain was beginning to take its toll.6个星期的忐忑不安后，压力开始产生影响了。

11 judicial   

adj.司法的，法庭的，审判的，明断的，公正的

参考例句：

• He is a man with a judicial mind.他是个公正的人。
• Tom takes judicial proceedings against his father.汤姆对他的父亲正式提出诉讼。

12 corporate   

adj.共同的，全体的；公司的，企业的

参考例句：

• This is our corporate responsibility.这是我们共同的责任。
• His corporate's life will be as short as a rabbit's tail.他的公司的寿命是兔子尾巴长不了。

13 havens   

n.港口，安全地方( haven的名词复数 )v.港口，安全地方( haven的第三人称单数 )

参考例句：

• Your twenty havens would back out at the last minute anyhow. 你那二十个避难所到了最后一分钟也要不认帐。 来自辞典例句
• Using offshore havens to avoid taxes and investor protections. 使用海面的港口避免税和投资者保护。 来自互联网

14 controversy   

n.争论，辩论，争吵

参考例句：

• That is a fact beyond controversy.那是一个无可争论的事实。
• We ran the risk of becoming the butt of every controversy.我们要冒使自己在所有的纷争中都成为众矢之的的风险。

15 taxation   

n.征税，税收，税金

参考例句：

• He made a number of simplifications in the taxation system.他在税制上作了一些简化。
• The increase of taxation is an important fiscal policy.增税是一项重要的财政政策。

16 allure   

n.诱惑力，魅力；vt.诱惑，引诱，吸引

参考例句：

• The window displays allure customers to buy goods.橱窗陈列品吸引顾客购买货物。
• The book has a certain allure for which it is hard to find a reason.这本书有一种难以解释的魅力。

17 federation   

n.同盟，联邦，联合，联盟，联合会

参考例句：

• It is a federation of 10 regional unions.它是由十个地方工会结合成的联合会。
• Mr.Putin was inaugurated as the President of the Russian Federation.普京正式就任俄罗斯联邦总统。

18 chambers   

n.房间( chamber的名词复数 )；（议会的）议院；卧室；会议厅

参考例句：

• The body will be removed into one of the cold storage chambers. 尸体将被移到一个冷冻间里。 来自《简明英汉词典》
• Mr Chambers's readable book concentrates on the middle passage: the time Ransome spent in Russia. Chambers先生的这本值得一看的书重点在中间：Ransome在俄国的那几年。 来自互联网

19 convenes   

召开( convene的第三人称单数 )； 召集； （为正式会议而）聚集； 集合

参考例句：

• The Premier convenes and presides over the executive meetings and plenary meetings of the State Council. 总理召集和主持国务院常务会议和国务院全体会议。 来自汉英非文学 - 中国宪法
• Chinese woman tenth the National People Congress convenes grandly today in Beijing. 中国妇女第十次全国代表大会今天在北京隆重召开。