Once the December 2020 ruling of the international tribunal on the arbitration initiated by Cairn came overturning the levy of taxes on the reorganisation of India business that Cairn carried in 2006 before listing the local unit, "the government could have just released those shares and the matter would have ended," a leading tax expert says.
It also affirms to challenge other related suits
Within hours of meeting between Finance Secretary Ajay B Pandey and Cairn Energy Chief Executive Office Simon Thomson, Government affirmed that it would not just file an appeal against the arbitration award but also contest other related legal suits.
“The Govt will file an appeal against Cairn Arbitration award soon and will contest its sovereign rights to tax,” a Government source said on Friday. Further, he mentioned that it would also strongly contest other suits filed by Cairn Energy at various other international courts.
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This is the second arbitration an award where Government will move to the appellate forum. Earlier, the Government appealed against the award given in favour of Vodafone.
Synopsis
If India fails to comply, it will fall foul of the New York Convention. As India is a signatory to the New York Convention, the award can be enforced against Indian assets in numerous jurisdictions around the world for which the necessary preparations have been put in place, says Cairn CEO Thomson s letter to India.
Reuters
Related
India is staring at a potential $1.2-billion loss of face as the long-running retro tax case against Cairn Energy, the British oil firm, nears its climax.
At risk of seizure are Indian assets such as airplanes, bank accounts and other foreign properties that could be snatched to pay for the arbitration award.
Vodafone Tax Case: India Moves Singapore Court Against Arbitration Panel Verdict
An international arbitration court had in September last year rejected tax authorities demand for Rs 22,100 crore in back taxes and penalties relating to British telecom giant Vodafone s 2007 acquisition of an Indian operator.
Photo: PTI
Business10/Feb/2021
New Delhi: India has challenged in the Singapore high court an international arbitration tribunal’s verdict that overturned its demand for Rs 22,100 crore in back taxes from Vodafone Group Plc, and the order passed in Cairn Group’s case is under consideration of the government, Parliament was informed on Monday.
An international arbitration court had in September last year rejected tax authorities’ demand for Rs 22,100 crore in back taxes and penalties relating to British telecom giant Vodafone’s 2007 acquisition of an Indian operator.