• 4 minutes Natural gas is crushing wind and solar power
  • 7 minutes OPEC and Russia could discuss emergency cuts
  • 10 minutes Peak Shale Will Send Oil Prices Sky High
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 7 mins On Venezuela
  • 1 hour CCP holding back virus data . . . . . . Spanish Flu 1918 MUTATED, Came in 3 waves, Lasted 14 months and killed upward 5% World population
  • 1 hour "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 1 day Cheap natural gas is making it very hard to go green
  • 5 hours The Great Recession recovery wasn't powered by Obama; it was oil and gas
  • 7 hours Gold.
  • 11 mins WTI are we seeing the perfect storm
  • 10 hours Engineering, Politics and Political Correctness from Down Under
  • 20 hours I Love Hills
  • 1 day Oil and gas producers fire back at Democratic presidential candidates.
  • 5 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 1 day Investments worthy in versatile and clean natural gas

Cairn Energy Claims $5.6 Billion From India

Offshore Oil Rig

Cairn Plc initiated arbitration proceedings to seek $5.6 billion in compensation from India on the grounds that India unfairly changed its capital gains tax.

Cairn’s claim is that India retroactively changed the capital gains tax to levy taxes on “routine” transfers of shares. According to Cairn, had it known India would tax these share transfers, it never would have chosen London for its IPO.

As part of the retroactive tax levy, Indian authorities slapped Cairn with a retrospective tax bill of roughly $4.3 billion (rs 29,000 crore), with Cairn stating that the taxation law’s retrospective nature was “an unfortunate coup of politics over the rule of law.”

According to Forbes, Cairn is accusing India of decreasing the value of its business, essentially, and is seeking compensation for this. While India claims that it is within its rights to charge capital gains taxes on the transfer of companies owning assets in India, Cairn retorts that this does not apply to non-Indian companies owning assets in India.

In addition to the fact that this is a retrospective claim—having happened 10 years ago--and again, according to Forbes, “there is little evidence that Indian law was such that the transaction should have been taxed in India at the time”, Cairn is also claiming that India failed to uphold its obligations under the UK-India Investment Treaty. It was not, Cairn says, “Fair and equitable treatment.”

“International arbitration proceedings, under the United Kingdom-India Investment Treaty, have commenced to settle the retrospective tax which has been ongoing with the government of India since January 2014. Cairn has filed its Statement of Claim to the International arbitration panel,” Indian media quoted a spokesperson of Cairn Energy as saying.

By James Burgess for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News