Working responsibly

Transparency

Payments to governments

Total payments to governments
    2014 2015 2016 (US$'000)
Licence, rental and entry fees 1,475 1,033 330  
Infrastructure improvements 1,995 0 0  
Corporate Income Tax (66,000) (51,865) (35,468)  
Withholding tax withheld on payments to group companies 4,029 333 0  
VAT (9,285) (6,257) (3,682)  
Customs Duty 1,058 309 172  
Training allowances 987 607 713  
PAYE and NI 16,069 18,009 18,559  
Withholding tax withheld on payments to third parties 28,051 10,095 4,244  
Other 5,460 1,388 408  
Payments to governments
    2014 2015 2016 (US $'000)
Licence, rental and entry fees:
Greenland 779 205 0  
Ireland 214 68 113  
Malta 146 551 0  
Mauritania 136 61 0  
Norway 37 0 105  
Senegal 107 107 107  
Spain 43 0 0  
United Kingdom 13 41 6  
Infrastructure improvements:
Morocco 1,995 0 0  
Corporate income tax:
Ireland 0 0.3 0.1  
Norway (66,000) (51,865) (35,468)  
Withholding tax withheld on payments to group companies:
Morocco 4,029 333 0  
VAT   
Ireland (23) 17 (7)  
Malta 0 (251) 0  
Morocco 16 20 14  
Norway (2,024) (1,533) 1,282  
Spain (170) (105) (26)  
United Kingdom (7,084) (4,405) (4,945)  
Customs Duty
Senegal 1,058 309 172  
Training allowances:
Greenland 539 0 268  
Malta 38 0 0  
Morocco 176 271 183  
Senegal 200 200 200  
Mauritania 34 136 62  
PAYE and NI:
Greenland 228 20 0  
Morocco 154 29 26  
Norway 3,794 2,714 3,085  
Senegal 0 0 239  
Spain 216 132 29  
United Kingdom 11,677 15,114 15,179  
Withholding tax withheld on payments to third parties:
Greenland 0 236 0  
Ireland 14 0 0  
Morocco 14,495 1,011 93  
Senegal 13,542 8,848 4,151  
Other:
Greenland 536 416 132  
Ireland 245 0 0  
Morocco 2,232 362 0  
Nepal 0 516 0  
Norway 2,343 58 (4)  
Senegal 104 36 280  

Note: Data has been provided for individual countries where relevant payments have been made.

Note: We disclose gross payments for assets that we operate and net payments for our non-operated assets.

Note: Negative figures reflect refunds received. These figures represent a net of payments and refunds.

Cairn reports these figures in support of two transparency initiatives, namely the European Union Accounting Directive and the Extractive Industries Transparency Initiative (EITI). The figures include both payments to government included in our EITI reporting, such as corporate income tax, licence fees and withholding tax suffered, and additional payments made including VAT and payroll taxes and social security costs.


Public policy

Political contributions
     2012 2013 2014 2015 2016 (£ pounds sterling)
Money paid to political parties and institutions 0 0 0 0 0  

Compliance

Non-compliance with laws and regulations (excluding environmental)
       2012 2013 2014 2015 2016
Incidents (number) 0 0 0 0* 0
Non-monetary sanctions (number) 0 0 0 0 0
Monetary value of significant fines (£’000 pounds sterling) 0 0 0 0 0

Note: * Cairn filed VAT/withholding tax returns late on four occasions in Morocco in 2015, it incurred penalties of $0.4MM, the equivalent of approximately 26% of tax payment when it was acting on its own behalf and as agent on behalf of its suppliers. The vast majority of this assessment ($0.4MM) arose as a result of late filling of annual tax summaries for 2013 and 2014.

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