India asks IBM to pay $866 million in outstanding tax

Discussion in 'Economy & Infrastructure' started by W.G.Ewald, Nov 3, 2013.

  1. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    India asks IBM to pay $866 million in outstanding tax: reports | Reuters
     
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  3. drkrn

    drkrn Senior Member Senior Member

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    no news in media till now???:shocked:

    why only is ibm targetted.sure many more companies do follow the same policies....
     
  4. Free Karma

    Free Karma Senior Member Senior Member

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    It's been happening for a few years, Nokia, Vodafone, and a few other companies have been caught for tax evasion. Either because of the government not being sharp enoguh to notice they didnt pay their taxes (which lead to the govt levying retrospective taxes, and caused an outroar saying the country is not investment friendly) or outright tax fraud in the case of Nokia.
     
  5. drkrn

    drkrn Senior Member Senior Member

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    our laws allow it dude.our existing laws are probably decades old which need to be reviewed
     
  6. pmaitra

    pmaitra Moderator Moderator

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    I am waiting for these corporations to accuse the government of being business or investor unfriendly.
     
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  7. TrueSpirit

    TrueSpirit Senior Member Senior Member

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    IMHO, retrograde taxation as being implemented in India is anti-investor in many ways. It is considered to be one of the main reasons behind negative FII sentiment.
     
  8. TrueSpirit

    TrueSpirit Senior Member Senior Member

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    Forget It....Trace my IP if you can
    Diwali started there, yet...or tomorrow ?
     
  9. The Messiah

    The Messiah Bow Before Me! Elite Member

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    Correct move by GoI.

    They better pay taxes if they want to reap profits in India. SC agrees with GoI hence the vodafone judgement.

    On another note good pay day coming up for lawyers :yey:
     
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  10. sob

    sob Moderator Moderator

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    Sorry Vodafone won the case in SC, then the Government changed the law with retrospective effect. Which is very unfair from the Government. You cannot plug the law with retrospective effect. This is not done. Only two countries have done this China and India and India is the only country to apply it.

    This IBM case is just the tip. This relates to transfer pricing and royalty payment. @sayareakd can shed some light on this.
     
    Last edited by a moderator: May 10, 2015
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  11. sayareakd

    sayareakd Moderator Moderator

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    lot happen, cant comment on it, lets keep it that way........
     
  12. Ray

    Ray The Chairman Defence Professionals Moderator

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    What taxes has the IBM defaulted?
     
  13. sob

    sob Moderator Moderator

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    It has to do with the fact that part of the software or backoffice work is done in India while some IBM entity gets the full contract. The whole contract is split amongst the various units around the world. The main point that arises is how do you quantify the value of the work being done and the subsequent value addition. IMO the kaws are quite opaque and outdated to deal with this.

    Sent from my GT-N7100 using Tapatalk
     
  14. sayareakd

    sayareakd Moderator Moderator

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    if work is done in India then it is taxable...............
     
  15. sob

    sob Moderator Moderator

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    The problem is with the valuation. The govt. Feels that they are undervaluing it.

    Sent from my GT-N7100 using Tapatalk
     
  16. Eastman

    Eastman Regular Member

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    Bye Bye DFI
    Last checked IBM's BPO sector got sold (at least in India), private sector winning a petition in India is not a new phenomenon and not impossible.
     

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