Truecaller expects India tax claim of about $90 million

Truecaller AB

Mon 06:53

Oct 19 (Reuters) - Sweden's Truecaller TRUEb.ST said on Monday it expected Indian authorities to seek a tax claim of about 900 million Swedish crowns ($90.85 million), including interest, after auditing its transfer pricing in the country.
A transfer price is the actual price charged in a transaction between related entities, according to India's Income Tax website.
    
Here are some details: 
The caller identification app said it had received the first formal transfer pricing order from India for the 2022/23 financial year. A formal tax demand will follow
The order, which relates to the allocation of revenue between Truecaller entities, proposes an adjustment of 270 million crowns in additional tax and interest, the company said
For the period between the financial years 2018/19 and 2023/24, the company said it expects a total liability of about 900 million crowns
However, it expects to get back about 350 million crowns in Sweden under double-taxation relief, putting its net potential exposure at about 550 million crowns
"Truecaller firmly reiterates that all claims are unfounded, as its transfer pricing policy complies with arm's-length principles verified by external experts," the company said
It added that it would appeal the order through Indian tax tribunals and courts

($1 = 9.9084 Swedish crowns)

 (Reporting by Akanksha Khushi in Bengaluru; Editing by Sonia Cheema)
 ((Akanksha.Khushi@thomsonreuters.com))