Samsung Challenges India’s $520M Tax Demand, Claims Authorities Knew of Import Practices

Samsung is challenging a $520 million tax demand from Indian authorities at a Mumbai tribunal, accusing the government of unfairly targeting it for misclassifying imports of mobile tower equipment sold to Reliance Jio from 2018 to 2021. The company argues that Indian officials were aware of the classification practice, as Reliance had imported the same equipment without tariffs until 2017. Samsung claims it was unaware of a 2017 warning issued to Reliance about the practice, and tax authorities never questioned Samsung until a January investigation. This marks Samsung as the second major foreign company, after Volkswagen, to contest a significant Indian tax demand recently, with Volkswagen suing over a $1.4 billion claim for similar import misclassification.

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