Sep 22, 2011
Is your ethical fund concerned about tax dodging companies?
Category: General
Posted by: tracey
Vodafone has been accused by India's tax authorities of creating an "artificial tax avoidance scheme" for its $11.2 billion takeover of Hutchison-Essar in 2007. Vodafone argues that the takeover was not taxable in India because it was made between two companies based in Britain and Hong Kong. India believes that the transaction, which granted Vodafone 67% control of Hutchison-Essar, was taxable because the main assets and sources of revenues were inside the country.
It seems that the two issues of remuneration and tax avoidance within companies are not really being addressed by the SRI Funds. We will be conducting a survey to find the Fund Managers attitudes to these issues and will be publishing the results shortly.
