Finance Minister Nirmala Sitharaman on Friday indicated the government’s intention to appeal against an arbitration panel, stating that India would return $ 1.4 billion to the UK’s Cairn Energy plc, to say that the country’s sovereign rule would be taxed. It is his “duty” to appeal in cases.
Last year, the government lost two high-profile arbitrations over the levy of taxes on British firms, using legislation that gives it the power to levy taxes with retrospective effect.
While the government has already challenged an international arbitration tribunal’s decision in a Singapore court to reverse its demand of ₹ 22,100 crore in back taxes from Vodafone Group plc, it has yet to pay the value of the December 21 India award. Has not done so against returning. Shares of seized and sold, apportioned, forfeited and tax refunds to accommodate the tax demand of 7 10,247 crore on Cairn.
“We have clarified our position on retrospective taxation. We have repeated this in 2014, 2015, 2016, 2017, 2019, 2020 so far. I do not see any lack of clarity, ”he said, referring to the Modi government’s stance of not using the 2012 law to raise any new tax demand.
He said, “Where I have received the arbitration award, in which there is a question of imposing a tax on the sovereign authority of India … If there is a question about the right of the sovereign tax, I will appeal, it is my duty to appeal,” he said. “An arbitration award, which questions the government’s right to tax, I will appeal that.” He made no direct reference to appeal against the Cairn Award.