Cadbury acknowledges receipt of tax notice from Indian authorities
Cadbury Plc owner Mondelez International Inc has confirmed that it Indian tax authorities have sent it a showcause notice alleging that the chocolate firm had used a nonexistent factory to avoid taxes.
According to a newly published WSJ report, Cadbury dodged taxes of nearly Rs 250 crore by providing wrong information that it was producing chocolates from a non-existing factory in Himachal Pradesh.
The company provided wrong information to enjoy tax exemption that was announced for companies that had started production in Himachal Pradesh by March of 2010.
The company allegedly also manipulated invoices and other documents to get the tax exemption.
A spokesperson for the company acknowledged that the company had received a showcause notice from India's excise department.
Acknowledging receipt of the notice, the spokesperson added, "We are in the process of reviewing the contents of the showcause notice from the excise department and will respond to it, in consultation with our legal advisors."
The spokesperson also claimed that the company had been completely cooperating with the Indian tax authorities on the enquiry.
The showcause notice to Cadbury is the latest in a series of such tax evasion cases against multinational companies working in India. Previously, Indian tax authorities sent tax notices to the likes of telecommunications giant Vodafone and oil giant Royal Dutch Shell.