MUMBAI: The Indian government has directed the multinational chocolate maker Cadbury to file about 5.5 billion rupees ($88 million) tax.
The government officials said that the tax authorities demanded the tax from the local arm of chocolate maker Cadbury, now Mondelez International Inc, in a dispute over a factory in the foothills of the Himalayas.
India, under pressure to reduce its budget deficit, has sought to boost fiscal revenue, not least by pursuing billions of dollars in unpaid tax claims against large multinationals in recent years. But it has also vowed to step back from what critics call “tax terrorism” after high profile cases, such as bumper claims against Vodafone Group Plc, threatened to tarnish its reputation.
India’s tax authorities began investigating Cadbury in 2011, accusing it of misusing an exemption provision in the hill state of Himachal Pradesh that allowed a “tax holiday” scheme.
