Edinburgh-based Capricorn Energy — formerly Cairn Energy — announced on Thursday it has withdrawn all global legal proceedings against the government of India, a move that clears the way for a $1 billion tax refund for the Scottish firm.
Capricorn is in the process of ending its long-running tax fight with the government of India and has promised shareholders a payout of up to $700 million.
“Capricorn Energy PLC announces that it, together with its subsidiary CUHL, has entered into the final stage in its undertakings with the Government of India by withdrawing all global enforcement proceedings,” said Capricorn.
“This concludes all the necessary steps required of the company under the rules of the India Taxation (Amendment Act) 2021.
“Upon its acceptance of the company’s submission that all of those requirements have been satisfied, the Government of India will pay the company a tax refund of approximately INR 79bn (US$1.06bn).
“Capricorn is working collaboratively with the Government of India towards expediting the refund within the process of the Tax Amendment Act Rules.
“The previously announced special dividend is expected to be paid in early 2022.”