Cairn Energy Plc on Sunday said it is working for a “swift resolution” in a tax dispute with India in which the Edinburgh-headquartered firm won a $1.2 billion international arbitration award on 23 December.
The move articulating Cairn Energy Plc’s position comes after the Centre’s decision to appeal against the arbitration award and to contest all cases filed by Cairn in international courts. India can challenge the arbitration award before the end of March.
The dispute relates to a retrospective amendment of tax rules in 2012, which gave the government the authority to tax merger and acquisition (M&A) transactions dating back to 1962 if the underlying asset was in India. The Centre had earlier raised a tax demand of around ₹10,400 crore, besides an equal amount in penalty and interest accrued.
