Indian tax authorities investigating Apple, Google, and Amazon over Rs 5,000 crore alleged tax non-payment
The Income Tax Department is investigating the Indian units of Apple, Google, and Amazon over possible non-payment of tax. The department is contemplating a tax demand of over INR 5,000 Cr, having rejected numerous justifications provided by the companies in question.
The department has been scrutinizing the tax returns of these companies for the past few years and has found discrepancies in their accounts. The companies have been accused of understating their income and overstating their expenses, resulting in lower tax liabilities.
Apple, Google, and Amazon have denied any wrongdoing and have said that they are cooperating fully with the investigation. However, the department has reportedly dismissed the companies’ justifications and is seeking to impose a tax demand of over INR 5,000 Cr.
This is not the first time that these companies have been in trouble with the Indian tax authorities. In 2017, Apple was fined INR 687 Cr for non-payment of tax. Google was fined INR 1,331 Cr in 2016, and Amazon was fined INR 202 Cr in 2018.
The latest investigation is likely to put further pressure on these companies, which are already facing scrutiny from regulators around the world. In the United States, Apple is facing a lawsuit from the Department of Justice over its alleged anti-competitive practices. Google is also facing an antitrust lawsuit in the European Union.
The outcome of the Indian tax investigation could have a significant impact on these companies. If they are found guilty of tax evasion, they could be fined heavily and could even be forced to pay back taxes for several years. This could damage their reputations and could make it more difficult for them to do business in India.