Thu, 22 Nov 2012 16:45:00 GMT | By Reuters

Govt investigating Cadbury India in tax evasion case

Govt probes allegations that Cadbury evaded Rs 2 billion in taxes even as it seeks sources of revenues to plug the ever-widening deficit gap


Govt investigating Cadbury India in tax evasion case (© Reuters)

NEW DELHI: Authorities in India are investigating the local unit of chocolate maker Cadbury over allegations the company may have evaded as much as 2 billion rupees in taxes, a junior finance minister said on Thursday, as the country beefs up its efforts to increase revenues to contain a widening fiscal deficit.

"Two cases of tax evasion by Cadbury India Ltd have been detected by the Directorate General of Central Excise Intelligence during the years 2009-10 to 2012-13, up to 31st October, 2012," the minister, S.S. Palanimanickam, told parliament in a written reply to questions from lawmakers.

This is the second time in as many years Cadbury has run into trouble with Indian authorities. Last year, an investigation was launched to determine whether Kraft Foods Inc (KRFT.O) needed to pay taxes arising from its $19 billion takeover of Cadbury. That probe is ongoing.

The latest of the two cases against Cadbury's India unit, which is controlled by Mondelez International Inc (MDLZ.O), involves alleged evasion of central excise duty, or factory gate tax at a company facility in the northern state of Himachal Pradesh.

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