Scots oil explorer Cairn Energy insists it will take ‘whatever steps are necessary’ as it battles a £250million tax dispute in India.
It emerged last week that Cairn’s Indian subsidiary was being probed by the country’s tax officials over results from seven years ago.
The company has been blocked from trading its shares in Cairn India – worth an estimated £600million – while the row is ongoing.
“Cairn has re-confirmed with its advisers that throughout its history of operating in India the company has been fully compliant with the tax legislation in force in each year,” the company said in a statement today.
“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 intends to take whatever steps are necessary to protect the Company’s interests and to defend its position.”
Indian tax chiefs filed the order against the Edinburgh-based firm over the transfer of its operations from the country to Jersey, claiming it did not pay tax on the £251.2million deal.