Cairn Energy plc said it would start filing documents under a new scheme for the refund of US$1.06bn taxes from the Indian government.
LEGISLATION
The company added it had entered into undertakings with the government to participate in the scheme introduced by recent Indian legislation, the Taxation Laws (Amendment) Bill 2021.
This allows the refund of taxes previously collected from Cairn in India.
ENFORCEMENT ACTIONS
“Subject to certain conditions, the Taxation Amendment Act nullifies the tax assessment originally levied against Cairn in January 2016 and orders the refund of INR 79bn (approximately US$1.06bn) which was collected from Cairn in respect of that assessment,” said Cairn in a statement.
“In order to satisfy those conditions, Cairn will commence the filing of the necessary documentation under rule 11UF(3) of the Indian Income Tax Rules 1962(Rules) intimating the withdrawal, termination and/or discontinuance of various enforcement actions.
“Cairn is working collaboratively with the Government of India towards expediting the refund within the process of the Tax Amendment Act Rules.”
The company added that the previously announced special dividend was expected to be paid by early 2022.
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