24th Jan 2014 12:59
LONDON (Alliance News) - Cairn Energy PLC Friday said it has been contacted by the Income Tax Department of India to discuss its fiscal 2007 income tax assessments, becoming the latest in a line of international companies to come under tax scrutiny in India.
The oil and gas exploration company said the discussions are regarding tax assessments from the year ending March 31, 2007 and it is co-operating to provide the necessary documentation and information requested by the Indian tax authorities.
While the discussions are taking place, the Income Tax Department has instructed Cairn to hold its shares in Cairn India Ltd. Cairn retains roughly a 10% investment in Cairn India, after it spun off the unit in 2006 and listed it in India a year later.
India has stepped up efforts to collect back taxes from major international companies as it tries to bring down its budget deficit. Companies including Vodafone Group PLC, Royal Dutch Shell PLC and IBM of the US are already embroiled in tax disputes in the country
The company said it will update the market in due course.
By Tom McIvor; [email protected]; @TomMcIvor1
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