According
to Reuters, last month a New Delhi-based law firm, on behalf of social activist
Ved Prakash, filed writ petition, saying Cadbury evaded substantial tax
liability in India
and now owes the government.
“We were
made aware that a public interest petition was filed in the High Court of
Delhi. We understand that the court has directed the petitioner to approach the
government to look into the relevant issues,” says Ransom Dsouza, spokesperson
for Kraft Foods. “Kraft Foods is fully committed to complying with Indian law.”
Kraft
purchased the British confectioner last year because of its strength in the
emerging markets in India
and Latin America.
This isn’t
the first time India
has cited a company for not paying taxes. Last year Indian tax authorities
wanted Vodafone to pay $2.5 billion on its 2007 purchase of Hutchison Whampoa
Ltd, who had a mobile business in the country.
"These
types of cases are something the Indian authorities have been pursuing for the
past two or three years, but it is not a widespread international practice,"
Abhishek Goenka, a partner at BMR Advisors in Bangalore, told Reuters.
While
Vodafone currently is fighting their case in high court, it remains to be seen
where Kraft Foods will end up.
For more
information visit www.kraftfoodscompany.com
-G.W.
