No taxes owed by GMR from US$271m arbitration award
The arbitration ruling indemnified the Indian developer from any tax liabilities.
26 May 2019, 9:00 AM
Indian infrastructure giant GMR does not owe any taxes from US$271 million paid as compensation for the cancellation of an agreement to develop the country's main international airport, the Attorney General's office said Thursday.
The Maldives Inland Revenue Authority issued notices in late 2017 for US$14.4 million as business profit tax, US$2.8 million as withholding tax and fines amounting to US$3.3 million after the payout awarded by a Singaporean arbitration tribunal was settled in November 2016.
In the wake of media reports last week that GMR has yet to pay the taxes, the AG office explained in a statement that the Maldives government and the state-owned Maldives Airport Company Ltd would be liable for any taxes owed from the arbitration award.
According to a section of the confidential arbitration ruling quoted by the AG office, if any sum was to be deducted as taxes, "the amount payable under the award shall be increased to enable [the GMR-led consortium] to receive the sum it would have received if the payment had not been liable to tax."
Become a member
Get full access to our archive and personalise your experience.
Already a member?
Discussion
No comments yet. Be the first to share your thoughts!
No comments yet. Be the first to join the conversation!
Join the Conversation
Sign in to share your thoughts under an alias and take part in the discussion. Independent journalism thrives on open, respectful debate — your voice matters.
