Voda tax case: India files application in Singapore HC against arbitration panel verdict – Times of India

NEW DELHI: India has challenged in the Singapore high court a global arbitration tribunal’s verdict that overturned its demand for Rs 22,100 crore in again taxes from Vodafone Group Plc, and the order handed in Cairn Group’s case is into consideration of the federal government, Parliament was knowledgeable on Monday.
An worldwide arbitration court docket had in September final 12 months rejected tax authorities’ demand for Rs 22,100 crore in again taxes and penalties regarding British telecom big Vodafone’s 2007 acquisition of an Indian operator.
The demand pertained to Vodafone’s $11-billion acquisition of 67 per cent stake in the cell phone enterprise owned by Hutchison Whampoa.
In December final 12 months, an arbitration tribunal in Hague unanimously overturned a Rs 10,247 crore retrospective tax demand on British oil and gasoline firm Cairn Energy Plc and requested the federal government to return shares it bought, dividend it seized and tax refunds it stopped to implement the tax.
Minister of state for finance Anurag Singh Thakur mentioned the arbitration tribunal constituted below the settlement between UK and India for Promotion and Protection of Investments And the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL) has dominated in favour of Cairn group (Cairn Energy Plc and Cairn UK Holdings Limited) vide its order dated December 21, 2020.
“An application has been filed in the High Court of Singapore to set aside the award dated 25.09.2020 in the case of Vodafone International Holdings BV. In the case of Cairn group the matter is under consideration of the government,” Thakur mentioned in the Lok Sabha.
To a query on whether or not the whole retrospective tax needs to be paid by the federal government to those corporations, Thakur mentioned, “The details terms of the award are under examination by the Government”.
The authorities had used a 2012 legislation that gave tax authorities the facility to reopen previous circumstances, to hunt taxes from Vodafone and Cairn over alleged capital positive factors made.

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