Skip to main content

Cairn Energy wins over $1.2bn award in Tax Arbitration against India at ICJ

 In a major instance, India lost the Cairn Arbitration Case.The case was related to the retrospective tax amendment law and the verdict came late night Tuesday. How did the dispute arise?


Cairn received a notice from the income tax department in January 2014, raising a preliminary assessment of ₹10,247 crore tax liability relating to the group reorganisation done in 2006, when Cairn UK transfered about 10% shares of Cairn India Holdings to Cairn India. This gave rise to different interpretations on whether the UK-based company made capital gains, preceding an initial public offering (IPO) of shares by Cairn India.In March 2015, the I-T department had contended that Cairn UK made a capital gain of Rs 24,503.5 crore in the internal reorganisation. Cairn Energy in 2015 initiated an international arbitration to challenge retrospective taxation.


In the Verdict, India has been asked to pay ₹8,000 crore in damages to the UK oil major.


This amount is equivalent to the value of shares of Cairn that the government had sold to recover a part of the tax demand. It also includes the dividends and tax refund seized.


Source LinkIn a major instance, India lost the Cairn Arbitration Case.The case was related to the retrospective tax amendment law and the verdict came late night Tuesday. How did the dispute arise?


Cairn received a notice from the income tax department in January 2014, raising a preliminary assessment of ₹10,247 crore tax liability relating to the group reorganisation done in 2006, when Cairn UK transfered about 10% shares of Cairn India Holdings to Cairn India. This gave rise to different interpretations on whether the UK-based company made capital gains, preceding an initial public offering (IPO) of shares by Cairn India.In March 2015, the I-T department had contended that Cairn UK made a capital gain of Rs 24,503.5 crore in the internal reorganisation. Cairn Energy in 2015 initiated an international arbitration to challenge retrospective taxation.


In the Verdict, India has been asked to pay ₹8,000 crore in damages to the UK oil major.


This amount is equivalent to the value of shares of Cairn that the government had sold to recover a part of the tax demand. It also includes the dividends and tax refund seized.


Source Link


LEXIS AND COMPANY

"ADVOCATES AND LEGAL CONSULTANTS"

We are India’s Leading Law Firm

“The firm has always strives to create and implement innovative and effective methods of providing cost-effective, quality representation and services for our clients and will continue to meet and exceed the expectations of our valued clients.”


–    DR ANUPAM KUMAR MISHRA (ADVOCATE, FOUNDER-LEXIS AND COMPANY).


Get in Touch

LEXIS AND COMPANY.


C/O: DR ANUPAM KUMAR MISHRA.


OFFICE: A1B/26, JANAKPURI, GROUND FLOOR,


NEW DELHI,, DELHI, 110058.


INDIA.


lexisandcompany@gmail.com


CALL: +91-9830333388.


Comments

Popular posts from this blog

INCOME TAX SECTION 32AD - Investment in new plant or machinery in notified backward areas in certain States

 Description (1) Where an assessee, sets up an undertaking or enterprise for manufacture or production of any article or thing, on or after the 1st day of April, 2015 in any backward area notified by the Central Government in this behalf, in the State of Andhra Pradesh or in the State of Bihar or in the State of Telangana or in the State of West Bengal, and acquires and installs any new asset for the purposes of the said undertaking or enterprise during the period beginning on the 1st day of April, 2015 and ending before the 1st day of April, 2020 in the said backward area, then, there shall be allowed a deduction of a sum equal to fifteen per cent of the actual cost of such new asset for the assessment year relevant to the previous year in which such new asset is installed. (2) If any new asset acquired and installed by the assessee is sold or otherwise transferred, except in connection with the amalgamation or demerger or re-organisation of business referred to in clause (xiii)or cla

60 Minute Marriage Counselling Session On Phone

Description A 60 minute phone call with an expert Marriage\Relationship Counselor to discuss your marriage\relationship related issues. Counselling aims to resolve issues and improve communication in a relationship. Couples’ counselling works with both people in the relationship, however sessions can start with one individual, working towards the involvement of the other partner. What's Included a) 60 minute phone call with the counselor where you can discuss all your issues and seek guidance. What's Not Included a) Counselling session via meeting

Send Legal Notice for Divorce

 India being a secular country derives a large part of its laws from various religious practices. One such area of law is Divorce law of India. A divorce case in India can be initiated by either party based on the procedure relevant as per the law applicable to the parties. However, the procedure for divorce always starts with sending a legal notice.   Either party can send a legal notice to the other spouse intimating his/her intent to initiate legal proceedings for divorce. Sending a legal notice acts as a formal way of communication by one party to the other acting as a warning and at the same time creating chances for a last attempt for conciliation, if possible. Connect with an expert lawyer for your legal issue   What is a legal notice for divorce? A legal notice refers to a formal communication to a person or the opposite party in a case, informing him/her about one’s intention to undertake legal proceedings against him/her. Therefore, a legal notice for divorce is a formal inti