CK Hutchison Holdings Ltd. (0001.HK) said its Hutchison Telecommunications International Ltd. unit on Aug. 9 received a tax penalty order of about 9.6 billion Hong Kong dollars (US$1.23 billion) from Indian authorities.
This came after HTIL received an assessment order from the authorities in February for HK$9.6 billion of tax on capital gains related to an acquisition that took place in 2007, CK Hutchison said Monday in a statement.
HTIL believes that the taxes “cannot be validly imposed” on the company, said CK Hutchison, the flagship company of Hong Kong tycoon Li Ka-shing. The company said that according to a January 2012 ruling by the Supreme Court of India, the 2007 acquisition wasn’t taxable there.
CK Hutchison said the tax orders wouldn’t have any effect on its financial condition or operational results.
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(END) Dow Jones Newswires
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August 28, 2017 07:40 ET (11:40 GMT)