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New Delhi: The Parliament on Monday passed a bill that seeks to do away with the contentious retrospective tax provision and will impact retro tax cases of Cairn Energy and Vodafone.

Replying to the brief debate on the Taxation Laws (Amendment) Bill, 2021, in Rajya Sabha, Finance Minister Nirmala Sitharaman responded to a member's question if Cairn Energy or Vodafone will pursue any further appeals or arbitration after the enactment of the legislation.

"Discussions with the litigants will happen after the enactment of this law. Once it is passed, we are confident that they will also find the provisions very useful for them and, probably, consider taking into consideration what we brought in," she said.

Sitharaman said the government will refund the amounts "which are with us" and will not pay any interest. "That is very clearly a part of the bill," she said.

...

CBDT Chairman JB Mohapatra told that the new law is likely to come into effect by next week.

"We will have the new law by early next week," he said.

"There has been absolutely no pressure. The amendment is only to make matters clear and unambiguous to the investing community. It is all thanks to the combined leadership of at the level of government and bureaucracy. The political leadership has helped to pilot this amendment through," he added.

(it only becomes law, next week)

I got the Friday thing incorrect, it's now already passed. We can expect an RNS any time now with an update on where the arbitration stands. Wow, 160's is crazy on what's anticipated.

Little dip might occur because yesterday's ruling needs to be ratified on Friday.

I would imagine this has all been story boarded between the Indian government and Cairn, hence the kind of RNS announcement the company put out. It has allowed them to sit back and say little while we see the these cards being played out.

An announcement might come next week regarding the settlement, which then looks better, because the tax law will have been passed at all levels by then

It also explains last week's: "we have no formal agreement within the law" and now this week: "we are actively in conversation with Cain, further details soon..."

It's done and dusted in my book, hence why anything in the 160's is a stonking buy imo.

Cairn have quite a lot of losses to offset any tax but I wouldn't expect to be hit with 35% tax from a payment that's minus interest and costs. Should be a straight cash payment.

Where are you getting 35% tax from?

The trick is to hold this for the value to come through now. I'm not so sure we will see a super spike now, that's already happened. But what's left are outstanding fundamentals in FTSE250 company. Don't forget, Cairn is in an advanced position on the greener front too.

Essentially I think we've all but agreed the $1billion settlement.

£725m settlement cash + £300-350m cash in bank + assets worth circa £400m minimum = £3 a share

No allowance for Mexico exploration success in there.

India is in talks with Vodafone Group Plc and Cairn Energy Plc to settle long-running tax disputes with them, a top government official said after the nation last week moved to abolish a rule on retrospective taxation scorned by investors.

“There are some informal discussions going on,” Revenue Secretary Tarun Bajaj said in an interview with Bloomberg Television’s Haslinda Amin on Monday. “I would not like to discuss them in public domain, but overall the answer to your question is, yes,” he said when asked if the companies were willing to drop cases in international tribunals.

Exactly, still means the share price on cash only is about 35-40% off where it needs to be. Not many stocks I can see doing that on CASH alone. Forget all the producing assets.

Yeah, this is again very material progress. On cash alone we are 230p!

Won't be far off, whichever way you look at this, the market needs to know formally if an offer has been indeed been made. It's material.

Nevermind oil.

£700m plus £400m cash + nothing for assets = wrong share price!

Didn't think of would be buying down here again. Looks like an easy buy and hold for 200p plus?

YES!!!! :D

They HAVE to RNS this and quick

MASSIVE LIFT in SP coming!!!

You'll be doing very well, for some reason the share price is like a rabbit in the headlights!!

This looks massive and only minutes old!

https://www.ndtv.com/india-news/government-to-scrap-controversial-retrospective-tax-law-that-led-to-row-with-vodafone-cairn-energy-2503490#pfrom=home-ndtv_topscroll