INDIA: Mondelez "co-operating" with authorities over Cadbury tax probe

By Michelle Russell | 22 November 2012

Cadbury is being investigated over allegations the company may have evaded as much as INR2bn (US$36.29m) in taxes

Cadbury is being investigated over allegations the company may have evaded as much as INR2bn (US$36.29m) in taxes

Mondelez International has said it is co-operating with authorities in India over alleged tax evasion in the country.

The snacks group's Cadbury India unit is being investigated over claims the company may have evaded as much as INR2bn (US$36.3m) in taxes.

According to Reuters, finance minister SS Palanimanickam told India's Parliament this week: "Two cases of tax evasion by Cadbury India Limited has been detected by the Directorate General of Central Excise Intelligence during the years 2009-10 to 2012-13, up to 31st October, 2012."

A spokesperson for Cadbury said in a statement: "A compliant and ethical corporate culture, which includes adhering to laws and regulations in the countries in which we operate, is integral to our success. To that end, we are fully co-operating with the authorities on this enquiry. Since the investigation currently is under way, it will be inappropriate on our part to discuss the details at this time."

This is the latest of two cases against Cadbury's Indian unit. In January last year, an investigation was launched to investigate whether Kraft Foods needed to pay taxes arising from it takeover of Cadbury.

Kraft rejected the criticism levelled at the company. However, the probe is understood to be ongoing.

Sectors: Confectionery, Emerging markets, Financials

Companies: Cadbury, Mondelez International

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INDIA: Mondelez "co-operating" with authorities over Cadbury tax probe

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