Vodafone, Cairn Flag Terms for Settling Retro Tax Cases

Vodafone Group and Cairn Energy have raised concerns over proposed terms for settling retrospective tax cases that require them to provide declarations from stakeholders that they will not press any claims after the disputes are resolved.

The two British companies raised these issues in Feedback on draft rules issued by the Central Board of Direct Taxes (CBDT) last month. Cairn has sought removal of the clause requiring all interested parties to waive claims.

People aware of the submissions to the government said the clause would be difficult of settlement on the company, including avoidance of any frivolous litigation by a third party. “For a global company, the number of such approvals to foresee whether any third party will or will not raise any claim in the future is a tall ask,” said one of the people. “Cairn has asked that the clause should be omitted.”

A Cairn Energy Spokesperson didn’t respond to specific queries from ET but said,” Cairn Energy is involved in constructive and amicable ongoing discussions with the government of India to bring the matter to a close in an open and transparent manner.”  S-ET

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