Cairn tax dispute brings shortcomings in India's economic policy to the fore
3 years, 5 months ago

Cairn tax dispute brings shortcomings in India's economic policy to the fore

Firstpost  

Revenue maximization can never be the goal of economic policy. India’s dispute with Cairn Energy is the direct consequence of the disastrous retrospective tax amendment law, introduced by the Congress-led United Progressive Alliance government, and accepted by the Narendra Modi regime. The British oil major got a notice from India’s Income Tax department in January 2014, asking for Rs 10,247 crore pertaining to the company’s 2006 reorganisation in which Cairn UK had transferred around 10 percent of its stake in Cairn India Holdings to Cairn India. Cairn Energy said on Thursday that “a Paris court had accepted its petition that Indian state-owned assets in the city worth over 20 million euros be frozen, claiming a significant win in its campaign to force the Indian government to pay Cairn billion-dollar damages in a protracted tax dispute,” Reuters reported. It said: “Our strong preference remains an agreed, amicable settlement with the government of India to draw this matter to a close.” While claiming to “vigorously defend its case,” the government also said, “Constructive discussions have been held and the government remains open for an amicable solution to the dispute within the country’s legal framework.” An amicable solution is what the government should aim for.

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History of this topic

India refunds Rs 7,900 cr to Cairn to settle retro tax dispute
2 years, 9 months ago

India refunds Rs 7,900 cr to Cairn to settle retro tax dispute

The Hindu  

The Indian government has paid Cairn Energy Plc ₹ 7,900 crore to refund taxes it had collected to enforce a retrospective tax demand, ending a seven-year-old dispute that had tarred the country’s image as an investment destination. Cairn dragged the government to international arbitration over the levy and enforcement proceedings and on December 22, 2020, got a favourable ruling that …

Taxing drama: The Hindu Editorial on retroactive tax disputes
2 years, 10 months ago

Taxing drama: The Hindu Editorial on retroactive tax disputes

The Hindu  

In what should be the last act of a long and winding tax dispute drama, British firm Cairn Energy has said it has concluded all steps prescribed by the Indian government in order to be eligible for the refund of a contentious retroactive tax levy. The original target for this move, that has sharply dented India’s credibility, was Vodafone, which …

Cairn ‘fulfils’ retro tax repeal steps, awaits ₹7,900 crore refund
2 years, 10 months ago

Cairn ‘fulfils’ retro tax repeal steps, awaits ₹7,900 crore refund

The Hindu  

U.K.’s Cairn Energy on Tuesday said it has complied with all rules of the retro tax repeal law to now become eligible for about ₹7,900 crore refund of taxes that were collected from it to enforce a retrospective tax demand. As part of the settlement reached with the government in the seven-year-old dispute over the levy of back taxes, the …

New York court pauses tax suit to allow Cairn to settle dispute with India
3 years, 2 months ago

New York court pauses tax suit to allow Cairn to settle dispute with India

Firstpost  

This follows Cairn Energy and Air India jointly asking the court to stay further proceedings in view of the fresh government enacting a fresh law to scrap retrospective taxation in the country A New York court has paused Cairn Energy’s pursuit of US assets of Air India for the recovery of USD 1.2 billion arbitral award, so as to allow …

Cairn Energy plans £500m shareholder bonanza from Indian government tax dispute
3 years, 3 months ago

Cairn Energy plans £500m shareholder bonanza from Indian government tax dispute

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy London-listed oil and gas firm …

Explained | Why is retrospective tax being scrapped?
3 years, 4 months ago

Explained | Why is retrospective tax being scrapped?

The Hindu  

The story so far: On Thursday, Finance Minister Nirmala Sitharaman introduced the Taxation Laws Bill in the Lok Sabha to nullify the tax clause provision that allows the government to levy taxes retrospectively. In January 2012, India’s Supreme Court backed Vodafone, ruling that indirect transfer of shares to a non-Indian company would not attract tax in India. Separately, in 2006-07, …

Centre moves to redact retrospective tax law
3 years, 4 months ago

Centre moves to redact retrospective tax law

The Hindu  

The government on Thursday took the first step towards doing away with the contentious retrospective tax law of 2012, which was used to raise large tax demands on foreign investors like Vodafone and Cairn Energy, and blamed for vitiating India’s investment climate — less than a month after Cairn Energy secured an order from a French court to freeze India’s …

Cairn versus India: What lies ahead
3 years, 5 months ago

Cairn versus India: What lies ahead

Live Mint  

Cairn Energy Plc has secured a French court order to freeze Indian assets in France after India challenged an award of over $1.2 billion to Cairn. Cairn began international arbitration in 2015 and won $1.2 billion in damages plus interest and costs last year, totalling more than $1.7 billion. In May 2018, ConocoPhillips got court orders to seize Venezuela’s state …

Cairn Energy dispute | Vigorously defending case against arbitration order, says govt.
3 years, 7 months ago

Cairn Energy dispute | Vigorously defending case against arbitration order, says govt.

The Hindu  

The government is “vigorously defending” its case against an international arbitration order asking it to refund $1.2 billion to Cairn Energy over a retrospective tax dispute, the Finance Ministry said on Sunday, asserting that India had never “agreed to arbitrate” a national tax dispute. “The government has raised several arguments that warrant setting aside of the award including but not …

Why Cairn Energy's move to attach Air India's assets in $1.2 billion tax case has the Centre in a fix
3 years, 7 months ago

Why Cairn Energy's move to attach Air India's assets in $1.2 billion tax case has the Centre in a fix

India Today  

The recent move by UK’s Cairn Energy Plc--threatening to seize the assets of national carrier Air India to enforce a $1.2 billion arbitration award the former had won against the Indian government last year--has proved to be extremely embarrassing for the Centre. Cairn Energy has moved the US district court for the Southern District of New York, seeking to make …

The Hindu Explains | How is the Indian government planning to respond to the Cairn tax ruling?
3 years, 9 months ago

The Hindu Explains | How is the Indian government planning to respond to the Cairn tax ruling?

The Hindu  

The story so far: In December 2020, a three-member tribunal at the Permanent Court of Arbitration in the Netherlands ruled against India in its long-running tax dispute with the U.K.-based oil and gas company Cairn Energy Plc and a subsidiary, Cairn UK Holdings Ltd. The dispute started in early 2014 when Indian tax authorities started questioning Cairn Energy requesting information …

India filing appeal against Cairn arbitration award, say sources
3 years, 9 months ago

India filing appeal against Cairn arbitration award, say sources

The Hindu  

India is in the process of filing an appeal against an arbitration panel ruling asking it to return $1.2 billion to British oil firm Cairn Energy Plc, sources said on Wednesday. India is in the process of filing an appeal in the Cairn arbitration award case, they said, adding it was well within India’s sovereign powers to redress the situation …

India will file appeal in Cairn arbitration case
3 years, 9 months ago

India will file appeal in Cairn arbitration case

Live Mint  

India will file an appeal in the Cairn arbitration award case relating to the tax dispute concerning the British oil firm, sources said. They said Cairn Energy set up "a tax abusive structure" and did not pay taxes anywhere in the world on the gains that it made in India. However, India is open for a constructive settlement of tax …

Cairn Energy threatens to seize Indian assets abroad in tax case
3 years, 10 months ago

Cairn Energy threatens to seize Indian assets abroad in tax case

India Today  

Cairn Energy has begun to take steps to identify Indian assets overseas against which it can enforce the $1.2 billion award it won last month in a treaty arbitration case against the South Asian nation, according to a letter seen by Reuters. Read | Setback for India as govt loses retrospective tax dispute case against energy giant Cairn A copy …

Hague court cites statements by Modi, Jaitley to overturn Rs 10k crore tax demand from Cairn
3 years, 11 months ago

Hague court cites statements by Modi, Jaitley to overturn Rs 10k crore tax demand from Cairn

Firstpost  

In 2016, the prime minister was quoted by the Financial Times as saying that the government “will not resort to retrospective taxation; we are making our tax regime transparent, stable and predictable” New Delhi: A three-member tribunal at the Permanent Court of Arbitration in The Hague cited statements by Prime Minister Narendra Modi and other ministers pledging not to use …

In Cairn Judgement Against India, Hague Court Cites PM Modi's Statement Pledging Not to Use Retrospective Tax
3 years, 11 months ago

In Cairn Judgement Against India, Hague Court Cites PM Modi's Statement Pledging Not to Use Retrospective Tax

News 18  

A three-member tribunal at the Permanent Court of Arbitration in The Hague cited statements by Prime Minister Narendra Modi and other ministers pledging not to use retrospective taxation to overturn a Rs 10,247 crore tax demand on British oil and gas company Cairn Energy Plc. It ruled that the 2006 reorganisation of Cairn Energy’s India business prior to listing on …

Cairn Energy wins tax arbitration against India: What the case is all about
4 years ago

Cairn Energy wins tax arbitration against India: What the case is all about

Business Standard  

India lost the Cairn arbitration case.The case was related to the retrospective tax amendment law and the verdict came late night Tuesday. Cairn received a notice from the income tax department in January 2014, raising a preliminary assessment of Rs 10,247 crore tax liability relating to the group reorganisation done in 2006, when Cairn UK transfered about 10 per cent …

Cairn Energy Wins Investment Treaty Arbitration Against India Over Tax Dispute: Report
4 years ago

Cairn Energy Wins Investment Treaty Arbitration Against India Over Tax Dispute: Report

News 18  

Cairn Energy has won an international arbitration case against the Indian government over a tax dispute, ending one of the most high profile disputes in the country, two sources with direct knowledge of the matter told Reuters. Cairn in March 2015 filed a formal dispute against a demand for more than $1.6 billion from the Indian tax department that dates …

Setback for India as govt loses retrospective tax dispute case against energy giant Cairn
4 years ago

Setback for India as govt loses retrospective tax dispute case against energy giant Cairn

India Today  

In what seems to be another setback for India after Vodafone, energy giant Cairn has won an international arbitration against the government over a retrospective tax dispute, said the company on Wednesday. A three-member tribunal, comprising a judge appointed by the Indian government, ruled that India’s claim of Rs 10,247 crore in past taxes over a period of 2006-07 internal …

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