[ET Net News Agency, 28 August 2017] CK Hutchison Holdings (00001) said its indirect
wholly owned subsidiary Hutchison Telecommunications International Limited (HTIL) received
on 13 February 2017 from Indian Tax Authorities (ITA) an assessment order dated 25 January
2017 in respect of tax (CGT) of about INR79 billion (HK$9.6 billion) on capital gains in
connection with the acquisition in 2007 by Vodafone International Holdings B.V. of the
entire issued share capital of CGP Investments (Holdings) Limited from HTI (BVI) Holdings
Limited, an indirect wholly owned subsidiary of HTIL, plus aggregate interest on the CGT
of about INR164.3 billion (HK$20 billion); and HTIL received on 9 August 2017 from ITA a
penalty order dated 3 July 2017 for a penalty of about INR79 billion (HK$9.6 billion)
relating to the CGT.
HTIL continues to believe that the taxes cannot be validly imposed on HTIL. The legal
advice obtained by HTIL continues to be that the above-mentioned orders of the ITA issued
on the basis of retrospective legislation seeking to overturn the judgment of the Supreme
Court of India in January 2012, which ruled that the acquisition was not taxable in India,
are in violation of the principles of international law.
CK Hutchison Holdings continues to believe that the above-mentioned orders would not
have any effect on its financial condition or the results of its operations for any
period. (HL)