India’s Department of Excise is investigating whether Cadbury unlawfully claimed tax exemptions when it established its factory in Himachal Pradesh.
Mondelez International, which spun-off from Kraft Foods in October, is already under investigation for its tax bills when it acquired Cadbury’s Indian subsidiary in February 2010. See HERE.
Cooperating with authorities
Commenting on the latest investigation, a Cadbury India spokesperson told this site: “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 cooperating 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.”
Cadbury stands accused of evading as much as 2bn Indian rupees ($36m) in taxes, according to news agency Reuters.
Mondelez refused to confirm the details of the case.
The company has six factories in India and is the market leader through Cadbury with a commanding 70% share.
Mondelez has identified India as one of its three priority chocolate markets along with Russia and Brazil.
Anand Kripalu is in charge of Mondelez’s operations in India and South East Asia and has been managing director of Cadbury India since 2005.