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It s my duty to appeal against Cairn award: FM - The Hindu BusinessLine

‘It is questioning India’s sovereign right to tax’ Finance Minister Nirmala Sitharaman has hinted that the government will appeal against the recent international arbitration award favouring Cairn Plc, especially as it questioned the country’s sovereign right to taxation. In December, an international tribunal had given an award of $1.2 billion with interest and cost favouring the Edinburgh-based energy major. Responding to a question from BusinessLine at an interaction with women journalists organised by the Indian Women’s Press Corps (IWPC) here, she said: “The question on India’s sovereign authority to tax cannot be questioned by anybody and even if it is an award of an international arbitration. when it’s about India’s right to tax I will appeal. It is my duty to appeal and as a sovereign nation it is the duty of the government to question that.” “So an arbitration award to question the authority of the government to even tax. I am sorry I will appeal o

Cairn says it is looking for mutually acceptable solution to tax dispute

$1 2-bn arbitration award: Cairn, govt discuss long-term capital gains tax

During a series of hectic talks between Cairn Energy and the Indian government over the $1.2-billion arbitration award in favour of the former last week, a slew of options was proposed by the two sides, including computation of capital gains and participation in the Vivad se Vishwas (VsV) dispute resolution scheme. The government is likely to go ahead and appeal against the arbitration award by a Permanent Court of Arbitration at The Hague before March 21, indicated finance ministry officials. Cairn Energy Plc on Sunday said it was hopeful that an acceptable solution to its tax dispute with the Indian government could be found to avoid prolonging and exacerbating the ‘negative issue’ for all parties. The company said it was clear it should continue to take all necessary steps to protect the interests of its shareholders.

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