On Tue, 7 Apr 2015 11:24:23 +1000, "dechucka" <
dech...@hotmail.com>
wrote:
Seems the owners KRAFT are desperate!
http://finance.indiaeveryday.in/news-cadbury-hit-with-92m-tax-bill-in-india-over-phantom-1023-298221.htm
Cadbury hit with $92m tax bill in India over ‘phantom’ factory
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http://www.ft.com/cms/s/0/021fef52-dc3e-11e4-b70d-00144feab7de.html#ixzz3Wh0xSh3G
Cadbury has been hit with a new Rs5.7bn ($92m) tax claim in India in
relation to allegations that the Dairy Milk chocolate producer claimed
excise benefits on a “phantom” factory.
The dispute is the latest in a series of tax battles involving global
multinationals in India, including Cairn Energy, the British oil
group, and Vodafone, the telecoms group, denting the country's
reputation as an investment destination.
Cadbury is fighting the tax bill. India's authorities suggest the
confectioner, which is owned by Mondelez International, the global
snacks business, provided inaccurate information when claiming an
excise tax exemption linked to a factory in the northern Indian state
of Himachal Pradesh.
The UK-based chocolate brand completed an expansion of the plant in
2009. India’s authorities have claimed the expansion was portrayed as
a new facility and therefore eligible for a tax exemption, rather than
an enlargement of an older factory.
This in turn prompted media reports in India claiming Cadbury had
sought tax benefits for a “phantom” factory that officially did not
exist, a claim the company denies, along with any other wrongdoing in
the case.
Cadbury said in a statement it planned to launch an appeal against the
claim, describing the dispute as “one of interpretation”.
“The company will challenge the [order] in appeal, as we firmly
believe that we have correctly claimed exemption of excise duty. We
also firmly believe that our executives acted in good faith and within
the law in the decision to claim excise benefit in respect of our
plant,” it said.
Cadbury declined to provide details of the new order. However, one
person with knowledge of the matter confirmed that the claim included
unpaid tax and interest charges of Rs5.7bn.
Although Cadbury’s case has little in common with disputes involving
companies such as Vodafone and Cairn, tax experts said it formed part
of a wider pattern in which foreign investors often came into conflict
with tax inspectors over exemptions offered to encourage investment in
India.
“This dispute is about whether Cadbury provided accurate records to
claim this particular benefit, but it is part of a bigger problem,”
said Dinesh Kanabar, founder of Mumbai-based consultants Dhruva Tax
Advisors.
“Foreign and Indian companies run into huge problems with the tax
office over things like offers of tax holidays. Practically every time
they ask for a benefit that they are due, the authorities find 100
reasons or glitches to say that it isn't due,” he added.
Cadbury is India’s leading chocolate brand by volume, although the
company has not provided separate revenues for its operations in the
country since it was bought by US-based food group Kraft for $19bn in
2010.
In 2012, Kraft split itself in two, creating Mondelez International.
In its latest annual report, Mondelez confirmed it had received a
claim for about $80m in unpaid taxes and penalties in India in early
2013.