NEW DELHI, March 12 (Reuters) - 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 no other such 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. (Reporting by Tommy Wilkes; Editing by Clara Ferreira-Marques and Frank Jack Daniel)