Samsung turned to the Indian Tribunal, which tried to overburn demand for $ 520 million in terms of alleged incorrect classification of imported network equipment and claimed that the authorities knew about the agency agency for years.
The company stressed that Reliance, according to official documents, imported the same components in a similar way.
As a result, Samsung has been the second main foreign company in recent months has attacked Indian tax demand.
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Previously, Volkswagen took legal action against the government of Prime Minister Narendry Modi and questioned a record tax claim of $ 1.4 billion on similar accusations of incorrect classification of imported components.
In the case of Samsung, the Indian tax authorities demanded in January to pay $ 520 million, accusing it of avoiding 10-20% of imports by incorrectly classifying a major component of the mobile tower. Between 2018 and 2021, the facility was reportedly sold to Mukesh Ambani Reliance Jio, Reuters reported.
Samsung in its 281 -page appeal filed with the Customs Customs Tax and the Court of Appeal (travel) in Mumbai strongly criticized the tax authorities. The company claimed that officials “fully knew” about their import practices and noted that Reliance was governed by a “long -established practice” of the same equipment without paying tariffs for at least three years until 2017.
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The Indian Samsung unit says that during the Indian tax investigation it found that Reliance was warned against practice in 2017, but Reliance did not inform the South Korean society and tax officials never doubted Samsung.
“The classification received by the petitioner (Samsung) was known to the authorities, but the same has never been questioned … The department was fully conscious,” says Samsung in his submission of April 17, which is not public, but was seen by Reuters.
“Reliance Jio did not inform Samsung about the 2017 tax warning, he adds.
Further details concerning the warning of 2017 issued by the relying of tax authorities remain unopulated and have not been included in Samsung’s legal submission. Reliance also did not answer questions from Reuters in this matter.
In addition to a $ 520 million tax demand against Samsung, the Indian authorities imposed a $ 81 million fine on seven employees, increasing the total liability to $ 60 million. It remains unclear whether Samsung employees individually attack sanctions.
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Demand demand represents a large piece of last year’s net profit of $ 955 million for Samsung in India, where it is one of the largest players in the electronics and smartphones.
In defending his tariff statements, Samsung also claims that the tax office approved the order in January “in a hurry” and has not been given “fair opportunities” to submit its case despite “huge bets”.
The Samsung case concerns the import of a component called “Remote Radio Head”, a radiofrequency district enclosed in a small outdoor module that tax officials claim to be “one of the most important” parts of 4G telecommunications systems.
The case against Samsung claims that, between 2018 and 2021, he incorrectly classified imports of $ 784 million components from Korea and Vietnam to maximize profits, Reuters reported.
Investigators found that Samsung “exceeded all business ethics and industrial practices or standards to achieve his only motive to maximize his profit by cheating government treasury,” said January order.
(With Reuters inputs)
(Tagstotranslate) Samsung
