Cairn Energy PLC & Cairn UK Holdings Ltd. v. Republic of India, PCA Case No. 2016-7, Award (Dec. 21, 2020).
page 185 , para 793
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In a tax dispute, the question is whether and how a particular transaction is taxable under the applicable (municipal) law or, possibly, laws of several countries if the transaction is international. In tax-related investment disputes, on the other hand, the tribunal is tasked with determining whether the respondent State has breached substantive standards of treatment under the investment treaty through the exercise of its authority in the field of taxation and whether liability arises from that breach. The issue at stake is thus not a matter of domestic tax law; it is rather whether the fiscal measures taken by the State, valid or not under its own tax laws, violate international law.
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