All things Money Thread

[Big Daddy]

These cryptocurrencies are like initial days of the Internet. There was a frenzy and people could write anything and access anything. Next, countries started putting barriers. Crypto will become worthless once countries start banning them. Turkey has already banned it and India may follow Turkey.

Bitcoin tumbles after Turkey bans crypto payments citing risks | Reuters

 

[citymonk]

India US equation is getting bad day by day. After India showed it's unhappiness to US for not helping India in time of need during current corona crisis.
US too is showing it's unhappiness towards India with these Currency blacklist issues.

 

[Big Daddy]

It is a currency watch list and not a blacklist. Countries come and go from the watchlist. Watch list means that the currency has high volatility and needs to be watched for high variations.

 

[citymonk]

It is a currency watch list and not a blacklist. Countries come and go from the watchlist. Watch list means that the currency has high volatility and needs to be watched for high variations.

Now what does this means?
Is Indian government's credibility in International market currently going so low that Companies like Cairn will seize Indian assets abroad for some tax miscalculation in India.

Can't they wait to get refund money directly from Indian Government instead of going for this humiliating option.

Cairn begins process to seize Indian overseas assets to recover $1.7 billion

India has appealed against the arbitration award on the grounds that taxation-related matters are not covered in its bilateral investment treaty with the United Kingdom under which the case was filed.

indianexpress.com

 

[Big Daddy]

India has a tendency to define its own culture that is way different than what is accepted internationally. India has to pay or its assets will be seized.

The way I understand this is that the Indian government got taxes from Cairn and Cairn fought for a refund. The tribunal said Cairn should get a refund. Indian argument is that Air India is not India so no refund. Well, you can see that it is a scam.

When India was receiving taxes, the government takes them. When India needs to refund them then the government says Air India is not India. That kind of logic does not work in the USA where this case is fought.

 

[citymonk]

When India was receiving taxes, the government takes them. When India needs to refund them then the government says Air India is not India.

That is ok but why cannot Cairn receive a refund cheque as Indian Government is ready to abide the court verdict. As a common business sense Cash is always better then kind and Air India is loss making liability for India anyway.

 

[Big Daddy]

Indian news articles are hard to interpret as they are not well written. What is not clear is the sequence of things. Most likely this is what happened.

1. Cairn asks for a tax refund from the Indian government.
2. Indian government bills Cairn for back taxes and the dispute begins.
3. Tribunal says the Indian government is wrong and cannot collect back taxes.

Pause.... Nothing happens.

4. Cairn asks for a tax refund from the Indian government.
5. India sells AI shares to private players.
6. Indian government says AI is not India but owned by many private players, so the Indian government cannot issue tax refunds.

Cairn files a lawsuit in the US to recover tax refund money from the Indian government. Cairn is saying that proceeds from sale of AI or dividends received by the Indian government should be used to issue a refund.

 

[citymonk]

Some more news on Cairn refund issues. It seems Government is hiding some economy status facts of India.
In eyes of Cairn Indian economy is going the way of Venezuela and Pakistan as India government is not ready to give bank guarantee of refunds due to them.

Cairn identifies $70 bn assets for seizing to recover amount due from India

The assets identified range from Air India's planes to vessels belonging to the Shipping Corporation of India, and properties owned by state-owned banks to oil and gas cargoes of PSUs, as per a report

www.livemint.com

 

[Big Daddy]

I think this is a mess. Cairn is using British concepts like "alter ego" that do not make any sense in the US. Also, the US courts will only have jurisdiction of tax refunds that AI owes to Cairn in its US operations. AI has operations in many places and it seems Cairn has provided its services in multiple countries. Even with US bankruptcy law, if AI declares bankruptcy then its debts will be wiped off and the Indian government may not have to pay anything. Also, tribunal judgements are not considered very strong legal judgements. Tribunals are generally designed to resolve conflicts amicably because litigation is expensive.

 

[adsatinder]

I had CITI bank account in India. It became way too painful with government restrictions. Every now and then KYC formalities, upload this and that (Passport, proof of address) etc. I tried to close the account they did not close it and kept adding charges that I did not pay. I think Indian government added cash requirements when some banks had too many NPAs. When NRIs abandoned CITI, I think their profits started tanking and some accounts with fees started to have negative account balances. Indian banks are not customer friendly. In the US, I can close my bank account my making one phone call. I had written a letter to close my CITI bank account and they still did not close it. India like the EU has too much over regulation. This over regulation and taxation kills everything.

CITI Bank has closed it's operations in India for Retail Customers.
Check more detail in the given link below:
Banks in India