Free Republic

India could be facing a constitutional crisis, after the government proposed new legislation which would overrule the courts and tax companies for deals retrospectively. Mobile operator Vodafone may have to pay $2.2bn of taxes on a 2007 deal which involved Indian assets, under new government proposals The change, announced in the annual budget, stands to torpedo foreign investment in the country and could force companies such as Vodafone, Kraft and SAB Miller to pay hundreds of billions of pounds of capital gains taxes they hadn’t banked on. Under the proposals set out by Finance Minister Pranab Mukherjee, Indian tax authorities...