Monday, January 25, 2021
  • About
  • Advertise
  • Careers
Scoftware Magazine
  • Home
  • Politics
  • Business
  • Culture
  • Opinion
  • Lifestyle
  • Entertainment
  • Login
No Result
View All Result
Scoftware Magazine
Home Business

Hague court cites statements by Modi, Jaitley to overturn Rs 10k crore tax demand from Cairn

Jaleel M. by Jaleel M.
December 27, 2020
in Business
0
Hague court cites statements by Modi, Jaitley to overturn Rs 10k crore tax demand from Cairn
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter


In 2016, the prime minister was quoted by the Financial Times as saying that the government ‘will not resort to retrospective taxation; we are making our tax regime transparent, stable and predictable’

Related posts

Union Budget 2021: Real estate sector seeks sops to boost housing demand

Union Budget 2021: Real estate sector seeks sops to boost housing demand

January 25, 2021
Union Budget 2021: Centre may announce formulation of ‘dedicated’ policy for toys sector

Union Budget 2021: Centre may announce formulation of ‘dedicated’ policy for toys sector

January 24, 2021

Hague court cites statements by Modi, Jaitley to overturn Rs 10k crore tax demand from Cairn

Representational Image. News18

New Delhi: A three-member tribunal at the Permanent Court of Arbitration in The Hague cited statements by Prime Minister Narendra Modi and other ministers pledging not to use retrospective taxation to overturn a Rs 10,247 crore tax demand on British oil and gas company Cairn Energy Plc.

The tribunal, in a 582-page judgment on 21 December, ordered the return of the value of shares that the Income Tax Department sold as also the dividend it seized and tax refunds it withheld to recover tax demand that was levied following the 2012 amendment to the Income Tax Act that gave authorities powers to seek taxes on past deals.

It ruled that the 2006 reorganisation of Cairn Energy’s India business prior to listing on local bourses was not “unlawful tax avoidance” and ordered tax authorities to drop the tax demand.

In the order, the tribunal, which consisted of one member appointed by the Indian government, said the Bharatiya Janata Party’s (BJP) 2014 “election manifesto criticised the preceding government for having unleashed ‘tax terrorism’ and ‘uncertainty’, which ‘negatively impact[ed] the investment climate’.”

In his first budget speech in July 2014, then finance minister Arun Jaitley proposed that a CBDT-supervised ‘High-Level Committee’ be implemented to scrutinise fresh cases that had arisen following the 2012 Amendments.

After stating that, “[t]his government will not ordinarily bring about any change retrospectively which creates a fresh liability”, he announced that “henceforth, all fresh cases arising out of the retrospective amendments of 2012 in respect of indirect transfers and coming to the notice of the Assessing Officers will be scrutinized by a High Level Committee to be constituted by the CBDT before any action is initiated in such cases,” the order said.

On 7 November, 2014, Jaitley, according to the order, insisted that his government had taken a “policy decision that as far as this government is concerned [] even though there is a sovereign power of retrospective taxation, we are not going to exercise that power”.

On 13 January, 2015, Jaitley was quoted as saying that the 2012 Amendment had “scared away investors from India” and that “the government had no intention of using the retrospective tax provision”.

“This view was confirmed by Prime Minister Narendra Modi on  14 February, 2016. The prime minister was quoted in the Financial Times as saying that the government “will not resort to retrospective taxation; we are making our tax regime transparent, stable and predictable”, the tribunal said.

The Income Tax Department in 2015 slapped a Rs 10,247 crore tax demand on Cairn for alleged capital gains it made in the 2006 business reorganisation. Cairn denied the scheme, avoided any tax that were prevalent on that date and challenged the demand through an arbitration.

During the pendency of the arbitration, the government sold Cairn’s near five percent holding in Vedanta Ltd, seized dividends totalling Rs 1,140 crore due to it from those shareholdings and set off a Rs 1,590-crore tax refund against the demand.

The tribunal ordered the government to return the value of shares it had sold, dividends seized and tax refunds withheld to recover the tax demand along with interest. Also, it was asked to reimburse the cost of arbitration. All this totalled to $1.25 billion plus interest.

The government in response to the arbitration award had stated that it will study the order and “will consider all options and take a decision on the further course of action, including legal remedies before appropriate fora”.

This is the second loss the government has suffered in three months over the retrospective levy of taxes. In September, UK’s Vodafone Group won an international arbitration against the demand of Rs 22,100 crore in taxes.

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.



Source link

Previous Post

Hyderabad-based SucSEED Indovation announces closure of Rs 100 crore fund by raising Rs 40 crore

Next Post

Investors pour $9.3 billion into Indian startups, a decline as compared to 2019 data shows

Next Post
Investors pour $9.3 billion into Indian startups, a decline as compared to 2019 data shows

Investors pour $9.3 billion into Indian startups, a decline as compared to 2019 data shows

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

World Rugby Sevens Series Cancelled Over Coronavirus

World Rugby Sevens Series Cancelled Over Coronavirus

7 months ago
Manchester City Don’t Require Extra Motivation To Beat Real Madrid: Pep Guardiola

Manchester City Don’t Require Extra Motivation To Beat Real Madrid: Pep Guardiola

6 months ago
Sachin Tendulkar’s “Maginificent Technique” Forced Nasser Hussain To Conduct Numerous Team Meetings

Sachin Tendulkar’s “Maginificent Technique” Forced Nasser Hussain To Conduct Numerous Team Meetings

7 months ago
Little Rascals Star Bug Hall Arrested After Allegedly Inhaling Air Duster

Little Rascals Star Bug Hall Arrested After Allegedly Inhaling Air Duster

7 months ago

FOLLOW US

  • 79 Followers
  • 29.5k Followers
  • 82.6k Subscribers

BROWSE BY CATEGORIES

  • Business
  • Culture
  • Entertainment
  • Lifestyle
  • Music
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Tech
  • Travel
  • World News

BROWSE BY TOPICS

2018 League Balinese Culture Bali United Budget Travel Champions League Chopper Bike Doctor Terawan Istana Negara Market Stories National Exam Visit Bali

POPULAR NEWS

  • Kris Jenner Spills Details About Her Sex Life With Corey Gamble: Watch

    Kris Jenner Spills Details About Her Sex Life With Corey Gamble: Watch

    0 shares
    Share 0 Tweet 0
  • Common Saints Release New Single “Idol Eyes”

    0 shares
    Share 0 Tweet 0
  • KRISTIN LASH & JAKOB GREY Team Up On “Sleeping With The Lights On”

    0 shares
    Share 0 Tweet 0
  • Sam Heughan & Graham McTavish Are Men in Kilts for Travel Show

    0 shares
    Share 0 Tweet 0
  • A Blackhat Hacker Durgesh Singh Kushwah Tells Us All!

    0 shares
    Share 0 Tweet 0
  • About
  • Advertise
  • Careers

© 2020 Scoftware.com

No Result
View All Result
  • Home
  • Politics
  • Business
  • Culture
  • National
  • Sports
  • Lifestyle
  • Travel
  • Opinion

© 2020 Scoftware.com

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Terms and Conditions - Privacy Policy