- Created: Tuesday, 13 February 2018 11:45
The Indian subsidiary of Mondelez International faces a tax liability of more than $245 million, as per the multinational confectionery, food and beverages major’s 10-K filing with the U.S. Securities and Exchange Commission.
“In February 2013 and March 2014... Mondelez India Foods Pvt. Ltd., and other parties received showcause notices from Indian Central Excise Authority calling upon the parties to demonstrate why the Excise Authority should not collect a total of ₹3.7 billion ($59 million as of December 31, 2017) of unpaid excise tax and an equivalent amount of penalties as well as interest, related to production at the same Indian facility,” Mondelez International said in the filing. It said it had contested these demands.
“On March 27, 2015... the commissioner of the Excise Authority issued an order denying the excise exemption that we claimed for the Indian factory and confirming the Excise Authority’s demands for a total taxes and penalties amounting j5.8 billion ($91 million as of December 31, 2017),” it said.
It added, “The Authority issued additional notices [later] on the same issue but covering the periods January to October 2014, November 2014 to September 2015 and October 2015 to June 2017.”
It said, “These notices added [up to] j4.9 billion ($77 million)... of unpaid excise taxes as well as penalties to be determined up to an amount equivalent to that claimed... plus interest.” The amount, including interest, could exceed $154 million for the second set of notices.
Source: The Hindu