Retro Tax: Cairn Expects $1.06 BILLION Refund

Cairn Energy Expects a “near-term” resolution on retrospective tax issue with India a refund of Rs. 7,900 crores ($1.06 billion), the company said in its earning presentation on Tuesday.

It plans to return $700 million to shareholders via a special dividend and a share buyback upon receiving its money from India. The company said it is “working with the Government of India to expedite documentation and payment of refund,” adding that it is required to withdraw all related legal claims against India under the amended law.

Last December, an arbitration tribunal had ordered India to pay the UK firm $1.2 billion plus interest and cost. Cairn Energy’s expectations of a refund of $1.06 billion suggest the company is willing to forego its claim for the balance amount.

Cairn Energy and the government are seeking reconciliation after being warpath for more than six years. S-ET

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