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Tax demand to Cairn unwelcome: UK Foreign Secretary Hammond

Says govt clarified there aren't other similar cases

Reuters New Delhi

British Foreign Secretary Philip Hammond, speaking after talks in India's capital, said he had raised concerns over a $1.6 billion tax case involving British oil explorer Cairn Energy Plc and had been assured there aren't other similar cases.

Cairn Energy earlier this week filed a formal dispute against a demand for more than $1.6 billion from the Indian tax department, in the latest high-profile tax row to hit Asia's third-largest economy.

The latest dispute comes after the Indian government, led by Prime Minister Narendra Modi, had sought to reduce tax-related litigation and move towards a tax-friendly regime to boost much-needed foreign investment.

 

"The tax demand made to Cairn was very unwelcome," Hammond said after talks with Indian Finance Minister Arun Jaitley.

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First Published: Mar 12 2015 | 2:45 PM IST

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