Invest Policy
No Result
View All Result
Monday, March 8, 2021
  • Login
  • Latest News
  • Banking
  • Economy
  • Market
  • Investment Plans
    • Mutual Funds
    • Money
    • Property
    • Scheme
  • Finance
  • Insurance
    • General Insurance
    • Life Insurance
    • LIC
  • World
Subscribe
Invest Policy
  • Latest News
  • Banking
  • Economy
  • Market
  • Investment Plans
    • Mutual Funds
    • Money
    • Property
    • Scheme
  • Finance
  • Insurance
    • General Insurance
    • Life Insurance
    • LIC
  • World
No Result
View All Result
Invest Policy
No Result
View All Result
Home Latest News

Time to move on

by InvestPolicy
March 1, 2021
in Latest News
0
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

There have been three rounds of high-level negotiations between the Union Finance Ministry and UK oil company Cairn Energy over the settlement of a decade-old case of a tax dispute over the past. In December last year, an tribunal said that the government’s demand violated the bilateral investment treaty of the UK and India and more recently Cairn Energy has initiated a legal process in the US to implement the award. Now the danger is that some of the assets of the Government of India may be confiscated abroad to repay Cairn Energy’s $ 1.2 billion dues. However, the government does not seem ready to back down. Some reports state that it has given Cairn Energy the option that it is willing to pay half of the outstanding amount that would not include interest and penalties. It is also known that the Indian government is considering an appeal against the decision of the tribunal and may ask the Supreme Court to declare that the investment treaty does not apply to tax demands. It seems less a step of a sovereign government and more of an officer who is making every effort.

The only appropriate step for the government would be to completely eliminate the effective tax demand from the past. At the end of last year, the government also had to face defeat in arbitration against Vodafone. In that case the government’s demand for tax applied from a past date violated the bilateral investment treaty with the Netherlands. The government appealed in the Vodafone case and in Cairn’s case it is seen doing the same. But it would be a mistake. Be it Vodafone or Cairn, the time it will take and the effect it will have on the investment environment will prove to be a bigger loss than any financial gain. Since the government has already said repeatedly that it does not believe in effective tax demand from the past like the previous government did. In such a case, its claims of sovereign rights enforcement in the case of tax will only increase confusion and adversely affect the investment environment.

Cairn is not an incredible company. During its business in India, the company was involved in one of the biggest energy discoveries in the country’s recent history. Tax issues have already affected his perception of India and like Vodafone he hardly wants to invest in India. This policy is suicidal for a country struggling for private investment.

The government has given due priority to business ease and tax administration reform. These arbitration decisions should be seen as a legacy of the past, while they were to be overcome in the era of recent business reforms. According to the sentiment that the Prime Minister said in Parliament recently, it would be better to remain reform oriented so that companies investing in the country do not fall behind in such a way that they regret their decision. Demand for tax from past date may be the sovereign right of the country, but there is no doubt that it destroys policy stability and creates fear in investors. The way the government is trying to recover this amount at the moment, all things of business ease appear hollow.

  • Trending
  • Comments
  • Latest
MP E Uparjan

MP E Uparjan 2021 | Farmer online registration, mpeuparjan.nic.in portal

February 27, 2021
sukanya-samriddhi-yojana-vs-lic-kanyadan-policy

LIC Kanyadan Policy Vs Sukanya Samriddhi Yojana

March 2, 2021
What is the role of two employees of Wipro in wrong transfer of Rs 6554 crore to Citibank

What is the role of two employees of Wipro in wrong transfer of Rs 6554 crore to Citibank

February 26, 2021
This photo is from the year 2019.

Congress-CPI rally in Bengal tells old photo viral with wrong claim

March 1, 2021
Amazon's logo was being trolled by saying Hitler's face, the company made changes once again after seeing opposition

Amazon’s logo was being trolled as Hitler’s face, the company made changes once again after seeing protest

March 1, 2021
HDFC also reduced interest on home loan after SBI, know which bank is giving how much discount

Womens Day: Maharashtra government’s gift to women homebuyers, 1% stamp duty cut

March 8, 2021
Women got power, got freedom, let's know what the figures say

Women got power, got freedom, let’s know what the figures say

March 8, 2021
Gold Prices Today: Spot gold prices rise marginally, futures gold falls marginally, know the latest price of gold and silver

Gold Prices Today: Silver foil, gold slipping to 9-month minimum level, know what gold and silver prices are today

March 8, 2021
PM Modi to be chief guest on completion of 50 years of Bangladesh independence, tour to begin from March 26

PM Modi to be chief guest on completion of 50 years of Bangladesh independence, tour to begin from March 26

March 8, 2021
Bad loan pressure may increase on Indian banking sector - Fitch

Bad loan pressure may increase on Indian banking sector – Fitch

March 8, 2021

Recent News

HDFC also reduced interest on home loan after SBI, know which bank is giving how much discount

Womens Day: Maharashtra government’s gift to women homebuyers, 1% stamp duty cut

March 8, 2021
Women got power, got freedom, let's know what the figures say

Women got power, got freedom, let’s know what the figures say

March 8, 2021

Categories

  • Banking
  • Economy
  • Featured
  • Finance
  • General Insurance
  • Health Insurance
  • Insurance
  • Investment Plans
  • Latest News
  • LIC
  • Life Insurance
  • Market
  • Money
  • Mutual Funds
  • Property
  • Scheme
  • World

Site Navigation

  • Home
  • Advertisement
  • Contact Us
  • Privacy & Policy
  • Other Links
Invest Policy

InvestPolicy.com is one of the leading companies when it comes to loans and card marketplace. Our main motto is to help our customers in making personal finance decisions easy and convenient as per their comfort.

© 2021 Invest Policy. All Right Reserved.

No Result
View All Result
  • Latest News
  • Banking
  • Economy
  • Market
  • Investment Plans
    • Mutual Funds
    • Money
    • Property
    • Scheme
  • Finance
  • Insurance
    • General Insurance
    • Life Insurance
    • LIC
  • World
  • About Us
  • Contact Us

© 2021 Invest Policy. All Right Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In