Cairn files notice against India in $1.6 billion tax dispute

Oil explorer Cairn Energy Plc has filed a dispute notice against the Indian income tax department over a $1.6 billion tax claim for the fiscal year ended March 2007, in the latest case of a tax row involving a foreign company.

The dispute notice was filed under the terms of a UK-India Investment Treaty, meaning the Indian government and Cairn will start negotiations to find a resolution to the dispute, Cairn said.

If no agreement is reached, an international arbitration panel will rule, it said in a statement on Tuesday.

Cairn shares were seen opening down 25 percent on Wednesday due to the dispute, traders in London said.

Cairn joins a slew of multinational firms, including Vodafone Group Plc, Royal Dutch Shell Plc, IBM Corp and Microsoft Corp, that have fallen foul of India's tax collectors in recent years.

The latest dispute comes as the Indian government, led by Prime Minister Narendra Modi, has sought to reduce tax-related litigation and move towards a tax-friendly regime to boost foreign investors' sentiment.

A few foreign companies including Vodafone and Shell have won favourable rulings in Indian courts on some tax claims, but many cases are still being litigated.

Cairn said the investigation related to transactions carried out to reorganise the company's structure to prepare for Cairn India Limited's stock market flotation in 2007.

In 2011, Vedanta Resources Plc acquired controlling shareholding in Cairn Energy's India unit. The British company's stake in Cairn India was reduced to about 10 percent after the transaction.

The tax department's investigation, which started in January 2014, has meant that Cairn has not been able to proceed with the sale of its 10 percent stake in Cairn India, valued at about $700 million, Cairn said.

Cairn said it would seek "restitution of losses" resulting from the attachment of its stake in Cairn India since 2014. The oil company, however, did not intend to make any accounting provision relating to the draft tax assessment it has received.

"Against a backdrop of regular engagement with the government of India since January 2014 it is very disappointing to have received a draft assessment order at this time," said Cairn Chief Executive Simon Thomson in a statement.

Tax lawyers said the tax office was able to make a demand now on a transaction that happened in the fiscal year 2006/07 due to a 2012 law, which sought to raise tax claims on such past deals.

Formula One statistics for Australian Grand Prix

Statistics for Sunday's season-opening Australian Formula One Grand Prix at Melbourne's Albert Park:

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Lap distance: 5.303km. Total distance: 307.574km (58 laps)

Race lap record: Michael Schumacher (Germany) 1:24.125 (Ferrari, 2004)

2014 pole: Lewis Hamilton (Britain) Mercedes2014 winner: Nico Rosberg (Germany) MercedesStart time: 0500 GMT (1600 local)Tyres: Soft (yellow) Medium (white)

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WINS

Mercedes took a record 16 wins (from 19 races) last season. Double world champion Hamilton won 11, only the third driver to do that in a single season, team mate Rosberg five.

Of current drivers, four times champion Sebastian Vettel has 39 career wins, Hamilton 33, Fernando Alonso 32, Kimi Raikkonen 20 and Jenson Button 15.

Hamilton is the most successful British driver in terms of wins and is fifth on the all-time list.

Ferrari have won 221 races, McLaren 182, Williams 114 and Red Bull 50. Mercedes have won 29.

McLaren have not won for 38 races, a run that dates back to Brazil 2012. They went 48 races without a win from 1993-97.

Ferrari have not won since Spain in May 2013, which was the last time a team other than Mercedes or Red Bull won. Last season was the first since 1993 without a Ferrari win.

The last driver to win the season opener after ending the previous year with a victory was Vettel in 2010/2011.

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POLE POSITION

Mercedes and Williams were the only teams to start on pole last year.

Ferrari's last pole was in Germany with Alonso in 2012. Mercedes have been on pole in the last 11 races.

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POINTS

Sauber failed to score last year, a run of 19 races without a point for the Swiss team -- their longest barren stint since they entered the sport in 1993.

Sixty one drivers have scored on their debuts, the most recent being Kevin Magnussen and Daniil Kvyat last year.

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AUSTRALIA

McLaren's last podium finish was in Australia last year, with Magnussen second and Button third after Red Bull's Daniel Ricciardo was disqualified.

Button has won three of the last six races in Melbourne.

All five active champions have won in Australia.

No Australian has ever won his home race.

Melbourne has been the season-opener on 17 previous occasions. Since 2002, the winner in Australia has ended the season as champion on seven occasions. The exceptions were David Coulthard in 2003, Giancarlo Fisichella in 2005, Button in 2010 and 2012, Raikkonen in 2013 and Rosberg last year.

In total, the winner in Melbourne has gone on to be world champion 11 out of 19 times.

The race winner at Albert Park has started on pole on eight occasions. The lowest starter to win was Eddie Irvine from 11th in 1999. Rosberg started third last year.

Six of the last seven races have seen the safety car deployed.

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MILESTONE

Honda return to Formula One, with McLaren, for the first time since 2008.

Wales name unchanged team to face Ireland

Wales coach Warren Gatland named an unchanged starting lineup to face unbeaten Ireland in the Six Nations in Cardiff on Saturday as his side look to derail the holders' grand slams hopes.

Sam Warburton will captain Wales for a record 34th time, the flanker surpassing Ryan Jones, as Gatland retained the side that beat France 20-13 in Paris last time out.

Wales have rebounded from their opening defeat by England with away victories against Scotland and France but face an Ireland side who will arrive in confident mood after three wins from three and have only lost twice in Cardiff since 1983.

“Ireland are the form team in Europe and we know it is going to be a huge battle," Gatland said in a WRU statement.

“We return to the Millennium Stadium after two tough away trips with two victories and will be looking to build on that.

“We saw an improvement against Scotland and then saw another step up against France and we know we will need to do the same against Ireland on Saturday."There are two injury-forced changes on the bench with uncapped Rob Evans and his Scarlets team mate Jake Ball coming in for Paul James and Bradley Davies.

Wales:

15-Leigh Halfpenny, 14-George North, 13-Jonathan Davies, 12-Jamie Roberts, 11-Liam Williams, 10-Dan Biggar, 9-Rhys Webb; 8-Toby Faletau, 7-Sam Warburton (captain), 6-Dan Lydiate, 5-Alun-Wyn Jones, 4-Luke Charteris, 3-Samson Lee, 2-Scott Baldwin, 1-Gethin Jenkins

Replacements: 16-Richard Hibbard, 17-Rob Evans, 18-Aaron Jarvis, 19-Jake Ball, 20-Justin Tipuric, 21-Mike Phillips, 22-Rhys Priestland, 23-Scott Williams

Liberty Global buys into Formula E

Liberty Global buys into Formula E

 John Malone's Liberty Global and Discovery Communications, who have been linked in the past with Formula One, have become shareholders in the new Formula E electric series.

Formula E said in a statement that the two companies had secured minority investments.

No figures were given but the Hollywood Reporter indicated the combined investment was approximately $55 million for a one third stake.

"It is a significant step forward for Formula E to receive the backing of two major global media companies when we are barely halfway through our first season," said Formula E chief executive Alejandro Agag.

"The experience and knowhow they bring will provide a significant boost to Formula E."

Reports last year suggested Liberty Global and Discovery Communications were interested in buying a combined 49 percent stake in Formula One from rights holders CVC and Lehman Brothers.

Formula E is holding its fifth round of the season in Miami this weekend.

China says search for missing Malaysian plane will not stop

China says search for missing Malaysian plane will not stop

China's foreign minister said the search for a Malaysian Airlines flight which vanished one year ago will not stop, adding that the government will keep providing whatever help it can to relatives of those on board.

"The search for MH370 will continue," Chinese Foreign Minister Wang Yi said on the sidelines of an annual meeting of China's parliament.

"Today must be a tough day for the family members of those onboard," Wang added. "Our hearts are with you."

No trace has been found of the Malaysia Airlines Boeing 777 aircraft, which disappeared a year ago on Sunday carrying 239 passengers and crew, in what has become one of the greatest mysteries in aviation history.

Most of those on board were from China.

Flight MH370 vanished from radar screens shortly after taking off from Kuala Lumpur, bound for Beijing. Investigators believe it was flown thousands of miles off course before eventually crashing into the Indian Ocean.

Australia's deputy prime minister said recently the search for the plane could not go on forever, and discussions were already under way between Australia, China and Malaysia as to whether to call off the hunt within weeks.

Wang said that Malaysian Airlines has started compensation work for family members.

"We will provide all necessary assistance and services to each family of those onboard the plane," he said. "We will help you uphold legitimate interests and lawful rights."

Canada and Kurds disagree over soldier's death in Iraq

The Canadian government and Kurdish officials are publicly disagreeing over the circumstances of a Canadian soldier's death in a friendly fire incident in Iraq.

The death Friday of Sgt. Andrew Joseph Doiron on Friday marked Canada's first casualty as part of the U.S.-led coalition's war on the extremist Islamic State group.

Kurdish officials said Sunday that Doiron was killed after he and other Canadian soldiers showed up to the front line unannounced to call in airstrikes.

"They went to the frontline to direct airstrikes because the area was attacked by ISIS the day before," Hezhar Ismail, director of coordination and relations for the peshmerga, the Kurdish fighters, told The Associated Press, using an acronym for the Islamic State group.

Canadian Defense Minister Jason Kenney responded to allegations Sunday that Canadian soldiers were on the front line in an interview with CTV, saying that Canadian soldiers were well behind the lines when the soldier was killed. Kenney said the soldiers had just returned to an observation post behind the front line when they were mistakenly fired upon by Kurdish fighters.

"They weren't on the front line," Kenney said. "It was 200 meters from the front."

The Canadian military also denied that the group was in the area to direct airstrikes.

"I can confirm it's a big no. They were not there to conduct airstrikes," said Daniel Lebouthillier, a spokesman for the Canadian military.

Kenney said he looks forward to hearing more after an investigation is completed.

"It's a regrettable case of mistaken identity. Obviously we want to know what happened," he said.

Canada's military on Saturday announced the death of Doiron, a soldier in the Canadian Special Operations Regiment based at Garrison Petawawa, Ontario. Three other Canadian soldiers were wounded in the incident and are in stable condition.

Peshmerga spokesman Halgurd Hekmat said Sunday a group of Canadian soldiers showed up unannounced Friday to the village of Bashiq, in Iraq's Nineveh province near the militant-held city of Mosul. The area had seen heavy fighting against Islamic State militants the previous day.

"When they returned, the peshmerga asked them to identify themselves," Hekmat told the AP. "They answered in Arabic, that's when peshmerga started shooting. It was their fault."

Canada has 69 special forces soldiers with Kurdish peshmerga fighters in what the government calls an advising and assisting role. They were sent to help train Kurdish fighters last September in a mission that was billed as noncombat with the elite troops working far behind the front lines.

Canadian soldiers have been helping the Kurdish fighters by directing coalition airstrikes against Islamic State fighters, a role generally considered risky because it means they are close to the battle against the militants. The fact that Canadian special forces have been involved so close to the front lines has stirred controversy in the country, but Kenney said the rules of engagement will remain the same.

The Canadians' efforts complement those of the United States, which has conducted the vast majority of the airstrikes against the Islamic State group. But in their new role, the Canadians are performing a task in targeting airstrikes that so far the U.S. has been unwilling to do. Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, has repeatedly said the U.S. would consider directing attacks from the ground but that it has not yet done so.

Hekmat added that he doesn't know why the Canadians were there. "I consider it an improper action by the Canadians, and illogical," he said.

Two Kurdish officials later told the AP that Doiron's body was flown to Canada early Sunday following a military ceremony at Irbil International Airport. They spoke on condition of anonymity as they were not authorized to brief journalists.

The Islamic State group currently holds a third of Iraq and Syria. The U.S.-led coalition began airstrikes targeting the extremists in August.

So far, four other troops have been killed as part of the coalition, not counting Iraqi forces. They include a U.S. Marine presumed lost at sea in October, a Marine killed in a noncombat incident in Baghdad in October, a U.S. Air Force pilot killed in December when his jet crashed in Jordan and a captive Jordanian pilot burned to death in a cage by the Islamic State group.

Obama: US would 'walk away' if no good Iran nuclear deal

President Barack Obama says the United States would "walk away" from nuclear talks with Iran if there's no acceptable deal.

Obama says any agreement must allow Western powers to verify that Tehran isn't going to obtain an atomic weapon, and that even if Iran "cheated," the U.S. and others would have "enough time to take action."

The president tells CBS' "Sunday Morning" that "if we don't have that kind of deal, then we're not going to take it."

Big gaps remain to be bridged if the sides are to reach a deal by the end of March deadline set by negotiators. The next round of talks is set to begin March 15.

Iran says its nuclear program is peaceful and exists only to produce energy for civilian use.

Senate Majority Leader Mitch McConnell is insisting that Congress have a chance to review and vote on any deal, but acknowledges that he doesn't have the support yet to override a threatened veto by Obama.

"I'm hoping we can get 67 senators to assert the historic role of the Senate and the Congress in looking at matters of this magnitude. Obviously, the president doesn't want us involved in this. But he's going to need us if he's going to lift any of the existing sanctions. And so I think he cannot work around Congress forever," McConnell told CBS' "Face the Nation."

Champions League spot is Man United's priority - Van Gaal

The FA Cup could offer him a trophy in his first season in charge of Manchester United but Louis van Gaal says qualifying for next season's Champions League is the top priority.

United have not won the oldest cup competition in football since 2004 and host holders Arsenal in the quarter-final on Monday, hoping to move a step closer to ending their wait to lift the trophy for a record 12th time.

But Van Gaal's focus is on restoring United to Europe's elite club competition after the team missed out this season following their worst Premier League finish in the previous campaign when they were seventh.

The Dutch manager, who took over at Old Trafford in the aftermath of that calamitous season, says his side must treat the FA Cup as a mere bonus and concentrate on finishing in the Premier League's top four to secure a Champions League spot.

"I always want to get the goals what we have set. And the goals we have set is the top four," Van Gaal said.

"A title is fantastic. When you win the FA Cup you are not in the Champions League which is important for the club, but you have won a title. So for the players it is fantastic, for the manager it is fantastic but our goal is to reach in our first year together a place in the Champions League."

United are fourth in the league with 10 games remaining, 10 points adrift of leaders Chelsea and one behind Arsenal in third, whose own manager Arsene Wenger once said that the "first trophy is to finish in the top four."

And Van Gaal agrees: "I think that for a club the Champions League is the highest level and that's why he is saying that."

The Dutchman may have his sights set on European football ahead of hunting domestic silverware but he says it is still important for his side to beat Arsenal at Old Trafford, as it could affect their form for the rest of the league campaign.

"Every match you play has an influence in the next match. So we are in a 'rat race' in the Premier League and the club who wins the FA Cup match has a very good feeling for the next matches," Van Gaal explained.

"It could be damaging for the team that loses, but you can also react."