I-T Dept Slaps USD 1.6 Bn Tax Demand on Cairn Energy

Posted By: Religare
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Income Tax Department slapped a Rs 10,247 crore (USD 1.6 billion) tax demand on Cairn Energy Plc, which termed the action as "very disappointing" and said it would contest the order, reported PTI.

    The tax demand relates to an alleged Rs 24,500 crore worth capital gains it made in 2006 while transferring all its India assets to a new company, Cairn India, and got it listed on the stock exchanges.

    The company said the order came at a time when the BJP government has been publicly talking about the negative impact of retrospective taxation on "international reputation and investor sentiment towards India".

    I-T Dept Slaps USD 1.6 Bn Tax Demand on Cairn Energy

    In a statement, Cairn said it has received "a draft assessment order from the Indian Income Tax Department."

    "The draft order addressed to Cairn's subsidiary, Cairn UK Holdings Limited, is in respect of fiscal year 2006-07 to the amount of USD 1.6 billion plus any applicable interest and penalties," it said.

    Cairn said it has instructed its counsel to file a Notice of Dispute under the UK-India Investment Treaty in order to protect its legal position and shareholder interests.

    Its CEO Simon Thomson said, "Cairn has consistently confirmed that it has been fully compliant with all relevant legislation and paid all applicable taxes in India and we are confident of our position under the UK-India Investment Treaty.

    "Against a backdrop of regular engagement with the Government of India since January 2014 it is very disappointing to have received a draft assessment order at this time. Since the election of the BJP, senior Government Ministers have consistently commented on the negative impact the issue of retrospective taxation has had on international reputation and investor sentiment towards India.

    Read more about: cairn india
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more