Truecaller expects India tax claim of about $90 million
TRUE•Truecaller expects Indian authorities to seek about 900 million Swedish crowns ($90.85 million), including interest, in transfer-pricing claims for 2018/19 through 2023/24. It expects about 350 million crowns in Swedish double-taxation relief, leaving net potential exposure of about 550 million crowns.
1. India tax order
Truecaller said it received its first formal Indian transfer-pricing order, for the 2022/23 financial year, and expects a formal tax demand to follow. The order proposes an adjustment of 270 million Swedish crowns in additional tax and interest related to revenue allocation between Truecaller entities.
2. Expected liability
For the 2018/19 through 2023/24 financial years, Truecaller expects total liability of about 900 million crowns. It expects to recover about 350 million crowns in Sweden under double-taxation relief, putting its net potential exposure at about 550 million crowns.
3. Company response
Truecaller said it considers the claims unfounded and that its transfer-pricing policy complies with arm's-length principles verified by external experts. It said it would appeal the order through Indian tax tribunals and courts.
