(1) Is the counterclaim within the Tribunal's jurisdiction pursuant to Article II, paragraph 1 of the Claims Settlement Declaration in that it arises out of the same contract, transaction or occurrence as the claim? In this connection, the Tribunal notes that, in this case, Article 7 of the contract merely allocates the tax risk between the Air Force and the Claimant; the tax law, not the contract, determines whether the Claimant is obligated to pay such tax.
(2) Is the counterclaim within the Tribunal's jurisdiction pursuant to Article II, paragraph 1 of the Declaration in that it was outstanding on 19 January 1981? In this connection, the Tribunal notes that the tax in question appears to have been assessed only in 1983 and apparently has not been paid by the Air Force.
(3) Is a tax counterclaim properly raised by a respondent in the case? In this case, the Tribunal notes that the counterclaim is raised by the Air Force, although the Islamic Republic of Iran is also a named Respondent.
(4) If jurisdiction exists, should the Tribunal consider tax counterclaims (including counterclaims for penalties and interest) in view, inter alia, of the difficulties involved and of the practice of national courts in refusing to enforce foreign revenue laws?
The Respondent, THE IRANIAN AIR FORCE, is obligated to pay the Claimant, INTREND INTERNATIONAL, INC. the following amounts:
U.S. $83,304.27, plus interest at the rate of 12% from 15 September 1977 to the date on which the Escrow Agent instructs the Depository Bank to pay the Award; and
U.S. $124,959.24, plus interest at the rate of 12% from 14 September 1978 to the date on which the Escrow Agent instructs the Depositary Bank to pay the Award,
all of which obligations shall be satisfied by payment out of the Security Account established by Paragraph 7 of the Declaration of the Government of the Democratic and Popular Republic of Algeria on 19 January 1981.
Each of the parties shall bear its own costs of arbitrating this claim.
This Award is hereby submitted to the President of the Tribunal for the purpose of notification to the Escrow Agent.