Business Desk, AnyTV, New Delhi
Published by: Kumar Sambhav
Updated Thu, 24 Feb 2022 09:10 PM IST
Summary
Significantly, Cairns did business in India during 2006-07. After this the company sold the Indian unit to Vedanta in 2011.
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Expansion
Capricorn Energy Plc said in a statement that the company has received $1.06 billion, of which 70 percent will be returned to shareholders. Let us tell you that in this case the tax department had used the 2012 law, which gave the department the authority to implement the rule by going back 50 years. In such a situation, those companies also came under the ambit, whose ownership may have gone abroad, but the assets were in India. Under this rule, a tax of Rs 10,247 crore was imposed on Cairns.
Significantly, Cairns did business in India during 2006-07. After this the company sold the Indian unit to Vedanta in 2011. Tax was imposed in 2014 citing profit of the same company. The British company filed a lawsuit against it. Also, said that till the reorganization the company had paid all its taxes and the same was confirmed by the then officials, but the tax department confiscated the remaining shares in the Indian unit of the company in 2014 and later sold it. . After this, the company’s tax refund was also stopped and the dividend was also stopped while demanding the remaining tax. The entire amount was Rs 7900 crore.
In protest, the company had dragged the Government of India to the International Court of Justice, where after the hearing on 22 December 2020, the decision was pronounced in favor of the company. In the judgment, the Government of India was ordered to return the collected tax along with interest and fine.