MUMBAI: Indian tax authorities have asked IBM’s local unit to pay Rs53.57bn in outstanding income tax on fiscal 2009 revenue, media reported yesterday.
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.
The Income Tax office issued the company a notice for under-reporting revenue for fiscal 2009 by the Indian unit, the Business Standard said, citing a tax official.
“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.
IBM has been locked in a tax dispute with authorities related to its 2009 reporting year income, media have reported previously. Officials at the income tax office were not available for comment.
In its latest 10-Q filed with the US Securities and Exchange Commission, IBM said it had recorded $394m 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.
Reuters
