Indian tax authorities have asked IBM’s Indian unit to pay 53.57 billion rupees ($866.20 million) in outstanding income tax on fiscal 2009 revenue, media reported on Saturday.<\/p>\n
In an emailed statement, an IBM India spokeswoman confirmed the company had received a tax notice, but declined to comment on the amount of tax liability or the nature of the notice.<\/p>\n
India’s Income Tax office issued the company a notice for under-reporting revenue for fiscal 2009 by the Indian unit, the Business Standard newspaper said, citing a tax official.<\/p>\n
“IBM does not agree with the tax department’s claims and will aggressively defend itself through the appropriate judicial process,” the IBM India spokeswoman said.<\/p>\n
IBM has been locked in a tax dispute with authorities related to its 2009 reporting year income, media have reported previously.<\/p>\n
Officials at India’s income tax office were not available for comment on Saturday.<\/p>\n
In its latest 10-Q filed with the U.S. Securities and Exchange Commission (SEC), IBM said it had recorded $394 million in prepaid income tax in India “at” September 30, 2013. IBM said a “significant portion” of that amount was paid in order to reserve its right to appeal previous tax assessments in India, which it said it expects to win in appeal.<\/p>\n
The tax office notice was a draft assessment order which can be challenged by IBM before the appellate authorities, the Business Standard said<\/p>\n
The case comes as India is pursuing tax claims against several multinationals, with Royal Dutch Shell, and Vodafone Plc among several firms involved in tax disputes in the country.<\/p>\n
EMC, IBM eye SoftLayer purchase<\/a><\/strong><\/p>\n IBM expands mobile strategy<\/a><\/strong><\/p>\n