OREANDA-NEWS. In its announcement issued on 24 January 2014, Cairn undertook to keep the market updated regarding the request from the Indian Income Tax Department for information regarding transactions undertaken by its wholly owned subsidiary, Cairn UK Holdings Ltd (“CUHL”) during the Indian fiscal year ended 31 March 2007.  
CUHL has filed a nil return for the year in question on the grounds that none of the transactions undertaken by it during that fiscal year is chargeable to tax in India.   
In addition Cairn has received two further notices from the Indian Income Tax Department.  The first, dated 29 March 2014, is a request made to Cairn Energy PLC to file a tax return for the fiscal year ended 31 March 2007. Cairn intends to file a nil return for this notice.   
The second, dated 31 March 2014, claims that CUHL should have withheld tax on dividends paid to its parent company, Cairn Energy PLC.  Neither Cairn nor CUHL has been asked to file any return in respect of this notice and Cairn intends to respond to the notice refuting this claim.
Throughout its history of operating in India Cairn has been compliant with the tax legislation in force in each year. Cairn has stated that it intends to take whatever steps are necessary to protect the Company’s interests.  
As stated in the earlier announcements, Cairn has been restricted by the Indian Income Tax Department from selling its shares in Cairn India Limited (valued at USD 1.0 billion as at 31 December 2013).