Indian media: "From Samsung to BYD", India launches a "tax pursuit" against multinational corporations!
On April 2, South Korean media NEWSPIM published an article stating that as the Indian government continues to impose large amounts of taxes on global companies, the tax disputes between the Indian government and global companies are intensifying.
Samsung Electronics India was recently ordered by the Indian tax authorities to pay a total of $601 million in back taxes and fines.
The Indian authorities claimed that Samsung Electronics incorrectly classified imported key communication equipment (remote radio heads) to evade 10% or 20% tariffs, and took measures to recover unpaid customs duties amounting to 44.6 billion rupees and impose fines. In addition, fines totaling $81 million were imposed on Samsung Electronics executives involved in this incident.
Before Samsung Electronics, the largest European car manufacturer Volkswagen, South Korean Kia Motors, and Chinese electric vehicle manufacturer BYD also faced tax investigations from Indian authorities.
Indian authorities stated that Volkswagen imported Audi and other cars in the form of completely knocked-down (CKD) kits but falsely declared them as individual parts to reduce tariffs, and levied taxes amounting to $1.4 billion. Volkswagen contested the decision, and the two parties are currently in litigation.
Kia Motors was also accused of evading taxes worth approximately 13.5 billion rupees. Indian authorities claimed that Kia Motors misclassified imported components of its luxury minivan Carnival to reduce tariff payments. If Kia Motors loses its lawsuit against Indian authorities, it may have to pay fines and interest totaling up to $310 million.
Chinese electric vehicle maker BYD is also under investigation by Indian tax authorities for reasons similar to those of Volkswagen and Kia. According to Reuters, BYD paid $8.37 million in response to Indian authorities' demands, but the investigation is ongoing, and additional taxes and fines may be levied.
The Economic Times mentioned the huge amount of taxes and fines imposed on companies like Samsung Electronics, pointing out that "while the world is suffering from the threat of tariffs under the Trump administration, India is launching a 'tax pursuit' against foreign companies."
Data from Indian tax authorities show that as of November 2024, the outstanding amount of service tax, customs duty, and consumption tax is approximately $53 billion, with 70% currently under litigation. Specifically, the disputed import tariffs alone amount to $4.5 billion, of which about one-third has been pending for more than five years.
The Economic Times noted that "the Indian government is demanding that auto brands such as Maruti Suzuki, Hyundai, and Toyota pay back taxes and tariffs from many years ago, totaling $6 billion. From the case of Samsung, it can be seen that in the context of the global tariff war, India's investigation into overdue tax payments is unlikely to ease."
Source: https://www.toutiao.com/article/1828292208442372/
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