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Cairn Energy - Arbitration award
February 22 , 2021
1403 days
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- The Indian government has decided to appeal against the international arbitration award of worth $1.2 billion.
- It was won by Cairn Energy Plc in the tax dispute.
- The Cairn Energy Plc had made transactions in 2006-07 that involved the entities in Jersey of USA.
- It led to capital gains for Cairn UK Holdings.
- This gain is taxable in India.
- So, the government alleges the company that the offshore transaction that was executed by Cairn was done with the aim of evading taxes.
- India had a tax demand of some Rs.104 billion.
- It also demanded an equal amount in penalty and interest accrued.
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