Cairn reassures on Indian tax rules compliance

LONDON Fri Jan 31, 2014 1:46pm IST

Cairn India employees work at a storage facility for crude oil at Mangala oil field at Barmer in Rajasthan August 29, 2009. REUTERS/Parth Sanyal/Files

Cairn India employees work at a storage facility for crude oil at Mangala oil field at Barmer in Rajasthan August 29, 2009.

Credit: Reuters/Parth Sanyal/Files

Related Topics

Stocks

   

LONDON (Reuters) - British oil explorer Cairn Energy (CNE.L) said it would defend its position in relation to inquiries by Indian Income Tax Department, reassuring on Friday that it had complied with all the country's fiscal rules.

The company said last week it had been contacted by India's tax authorities to discuss income tax assessments dating back about seven years, becoming the latest foreign firm to be embroiled in India's tax crackdown.

Cairn, which made its name finding huge oil fields in India that were then floated in a separate company as Cairn India (CAIL.NS) in 2006, said its advisers had checked its tax history and re-confirmed that the company has fully complied with the Indian tax legislation in force each year.

"The correspondence received from the Indian Income Tax Department indicates that this is in respect of amendments introduced in the 2012 Indian Finance Act which seek to tax prior year transactions under retrospective legislation," Cairn said in a statement.

"Cairn intends to take whatever steps are necessary to protect the company's interests and to defend its position," the company added.

While it discusses the issue with the Indian authorities, Cairn said it had been instructed not to sell any shares in Cairn India, in which it still holds a 10.3 percent stake.

The company, which is exploring for oil in Morocco and developing a large oil field off the coast of Britain, said that its activities elsewhere would continue as planned.

Shares in Cairn, which have lost 17 percent of their value since the company said it had been contacted by the Indian tax authorities last Friday, traded up 1.3 percent at 220 pence at 0808 GMT.

(Reporting by Sarah Young; editing by James Davey)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Wilful Negligence?

Wilful Negligence?

SEBI piles pressure on Sahara to sell overseas hotels  Full Article 

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage