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Vodafone may need to adopt a line of compromise in the ongoing tax-matter, foresees Ganesha

 

 

In
the year 2007, Vodafone International Holdings BV (a part of Vodafone
group) agreed to acquire the entire share capital of CGP Investment
Ltd, which controlled 67% of Hutchison Essar Limited, an Indian
company. The sale was supposed to have made outside India, and no tax
was paid in India. However, the IT authorities in India are of the
opinion that since the primary aim of the acquisition was to buy the
67% controlling interest in Hutchison Essar Limited, a company
resident in India, Vodafone is liable to pay tax on the profits
generated out of this transaction. In its counter argument, Vodafone
has challenged the jurisdiction of the Indian IT authorities. This
tax dispute between Vodafone group and Indian income tax (IT)
department has been going on for quite some time now, and with each
passing day the issue is becoming more and more complex.



In January 2012,
the Indian Supreme Court passed the judgement in favour of Vodafone.
However, in May 2012, Indian authorities confirmed that they were
going to charge Vodafone about Rs. 20000 crore (US $4.5 billion) in
tax and fines. As per a latest development, the Indian IT department
is all set to serve a notice to even HTIL in this matter. The tax
department has claimed that Vodafone is a "Representative
Assessee" or an agent of Hutchison Telecommunications
International Limited (HTIL). Hutchison shall be served a notice
under Section 143 of the IT act to inform the organisation of the
capital gains tax, which ideally, as per the government authorities,
shall have been paid.


Ganesha
attempts to analyse the current tax situation that Vodafone finds
itself into. To employ Vedic Astrology to analyse the situation, a
natal chart was prepared with the date as 8
th
May, 2007. This date is significant for Vodafone India chapter, as on
this date the transaction for Vodafone acquisition of Hutch-Essar was
closed.




 

 

Vodafone

Astrological
Analysis Of the Chart:



The
2nd House in the aforementioned chart signifies financial fortunes of
the organisation VODAFONE. It also signifies commercial affairs,
trade and stock
shares
of the company. The seventh House signifies the relations of the
company

through contracts and trade
agreements,
competitors and their activities
.
It also denotes all the activities connected with the business and
trade. In the natal chart, the Lord of the 2
nd
House Venus is placed in the 3
rd
House.
The
3rd House governs first-hand contacts of the organization and legal

communications
.
Venus is aspected by Moon in Vodafone's chart, which is a favourable
and profitable position. This is responsible for
bringing
an overall prosperity to the Vodafone enterprise, and the aspect also
yields
profits
.


 


WHAT
NEXT ?


SATURN
is currently transiting through the zodiac sign VIRGO in the 6th
House. This planetary movement is slated to take place from
16/05/2012 to 04/08/2012. This period shall be more or less quite
average for the company. The status of company's liabilities is going
to cause great concern to the management, though.


Saturn
shall enter the zodiac sign Libra on 5th August 2012. And,
Rahu will enter the sign of Libra on 25th December 2012.
The Saturn-Rahu conjunction is going to be unfavourable for the
organisation, as it is known to cause contraction in the business
activities, and may even lead to the paucity of resources and slump
in the production. The conjunction may also bring bad name to the
company, causing a definite setback to the business. Besides, all
sorts of troubles like government penalty and propaganda against the
management may be expected under such planetary events. The
transiting Ketu will conjunct the natal Sun. This aspect may
adversely affect the image of the company. The detracting forces may
crop up and adversely impact the productivity as well. Hence, the
year 2012 looks set to be an extremely challenging time for the
company Vodafone.


Considering
all these aforementioned planetary aspects, Ganesha feels that
Vodafone shall continue to face serious legal issues in year 2012.
The company may be forced to settle the issue amicably, though.
However, there are indications that company will have to make
compromises in order to settle the ongoing tax-matter. The transiting
Jupiter shall act as the silver lining for Vodafone, amidst all the
expected chaos. This astrological aspect will safeguard the company
in the troubled time. Thus, Vodafone may get some relief in the Tax
matter, says Ganesha, owing to this transit.


Vodafone till
now has challenged the claims made by the Indian IT department in
Bombay High Court. The latest developments on the matter indicate
that a notice may even be in offing for Hutchison International
(HTIL). The argument on the tax-matter shall be resumed in the Bombay
High Court on 18th June 2012. After looking at the chart
prepared for this particular date, Ganesha feels that Rohini
Nakshatra, the dominant constellation on the day, shall support
Vodafone. However, on the same day a combination of Venus, Ketu, Moon
and Jupiter is taking place in Vodafone's finance house. This aspect
may mitigate the supportive effect of Rohini constellation. Thus, in
conclusion, Ganesha foresees that Vodafone may still need to get into
a compromise in this matter.




With Ganesha's
Grace,

Dharmesh Joshi
The
GaneshaSpeaks Team


15 June 2012 11:41:06 GMT