Cairn team to visit India next week to convince government against appeal in tax case – Times of India
The team is searching for to meet finance minister Nirmala Sitharaman and different high government functionaries. The visit comes days after UK secretary of state for worldwide commerce Liz Truss’ journey.
The firm, which exited India just a few years in the past, is searching for to make a distinction with the Vodafone case, arguing that the tax demand is just not associated to cash flowing out however on account of pre-IPO restructuring.
Junior minister for finance Anurag Thakur advised Parliament that the government has filed an appeal in the Vodafone case, elevating expectations of an identical motion in the Cairn dispute too. The government has time till the third week of March to file an appeal.
Cairn believes that the award is binding on each events and the corporate’s board has written to Prime Minister Narendra Modi and key ministers to argue that its shareholders count on the government to meet its authorized obligations.
Sources mentioned, even the British government and a few distinguished shareholders, who’re world buyers, have conveyed the place.
“The money disputed, and now adjudicated, in the arbitration ultimately belongs to the shareholders, so the ramifications of the award and India’s honouring of it go well beyond Cairn itself and run across the international investment community more widely… Cairn’s Board of Directors will continue to take all necessary steps to protect the rights of our global shareholders under international law as the (investment protection) treaty affords strong provisions to enforce a successful award,” mentioned a supply.
On its half, the government believes that the award of a tribunal can’t override the sovereign powers of the state to legislate on tax issues.