RETROSPECTIVE TAXATION Flashcards
Inception of Retrospective Taxation
2012
What did the Retrospective Taxation Law seek to Tax
Tax Indirect transfer of assets located in India
Investors upon whom tax liability was imposed
Vodafone and Cairn Energy
Company which was bought by Vodafone
Hutchisson Essar Ltd in 2007
Deals executed after _____ will be liable for paying tax
1962
Tax claim for Vodafone
22,100 crores ( initially 7,990 crores )
When did Cairn made alleged capital gains
2006
Vodafone HQs
Berkshire, England
Vodafone CEO
Nick Read
Cairn Energy HQs
Edinburgh , UK
Cairn Energy CEO
Simon Thompson
Proposed changes
1) no tax demand if transaction took place before 28th May 2012
2) Refund of tax collected albeit without interest
3) Tax raised would be nullified if litigation is ceased
Permanent court of Arbitration
Hague, Netherlands,
Cairn won the right to seize Indian Assets in _____ worth _____
France, 20 million euros
Total refund to be paid
8100 crores
Cairn energy looked forward to sell ____ stake to mining conglomerate _____
30%, Vedanta
Which treaty was being violated as per Cairn Energy
India-UK Bilateral Investment Treaty signed in 1994, first ever bit by india
Other countries having a retrospective taxation law
USA, UK , Netherlands, Canada, Belgium, Australia and Italy
Which treaty was being violated as per Vodafone
India-Netherlands Bilateral Investment Treaty signed in 1995
Tax claim raised on Cairn
10,247 crores
When was PCA established
1899
Why was taxation liability imposed on Cairn Energy
Because it transferred shares of Cairn India holdings to its counterpart , Cairn India
Arbitration award by the PCA , Hague in the Cairn case
$1.7 billion
When did Cairn initiate international arbitration
2015
Which govt asset did Cairn seek to sue
Air India , in May 2021
Which govt asset did Cairn seek to sue
Air India , in May 2021
