Some of Cairn Energy Plc's marquee shareholders that include BlackRock, MFS, Franklin Templeton and Fidelity, have asked Indian government to honour an arbitration award and return USD 1.2 billion to the British oil firm, sources said.
The tribunal last month had overturned a Rs 10,247 crore retrospective tax demand on the British oil and gas company and asked the government to return shares it sold, dividend it seized and tax refunds it stopped to enforce the tax.
Arbitration panel cites PM, minister s assertion on retro tax to overturn Cairn tax demand
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Last Updated: Dec 27, 2020, 11:11 AM IST
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Synopsis
In the order, the tribunal, which consisted of one member appointed by the Indian government, said the Bharatiya Janata Party s (BJP) 2014 election manifesto criticised the preceding government for having unleashed tax terrorism and uncertainty , which negatively impact[ed] the investment climate .
In the order, the tribunal, which consisted of one member appointed by the Indian government, said BJP s 2014 election manifesto criticised the preceding government for having unleashed tax terrorism and uncertainty , which negatively impact[ed] the investment climate .
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 retrospective taxation to overturn a Rs 10,247 crore tax demand on British oil and gas company Cairn Energy Plc.
The tribunal, in a 582-page judgment on December 21, ordered return of the value of shares that the Income Tax Department sold as also the dividend it seized and tax refunds it withheld to recover tax demand that was levied following the 2012 amendment to the Income Tax Act that gave authorities powers to seek taxes on past deals.