Chitchat CECA Demands USD600MIL Tax from Samsung! Temasick should invest more!

[Pinkieslut]

Exclusive: India slaps Samsung with tax demand of $601 million for telecom imports​

By Aditya Kalra and Aditi Shah
March 25, 20254:55 PM GMT+8Updated 2 days ago

A customer prays inside a Samsung showroom in New Delhi, India, July 27, 2018. Picture taken July 27, 2018. REUTERS/Adnan Abidi/File Photo Purchase Licensing Rights, opens new tab

• Summary
• Companies

• Samsung faces tax bill as India gets strict with tariff cases
• S.Korean giant asked to pay back taxes for 2018-2021 imports
• Company says key telecom component does not attract tariff
• India a key growth market for Samsung phones, devices

NEW DELHI, March 25 (Reuters) - India has ordered Samsung and its executives in the country to pay $601 million in back taxes and penalties for dodging tariffs on import of key telecoms equipment, a government order showed, for one of the biggest such demands in recent years.
The demand represents a substantial chunk of last year's net profit of $955 million for Samsung in India, where it is one of the largest players in the consumer electronics and smartphones market. It can be challenged in a tax tribunal or the courts.
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The company, which also imports telecoms equipment through its network division, received a warning in 2023 for misclassifying imports to evade tariffs of 10% or 20% on a critical transmission component used in mobile towers.
It imported and sold these items to billionaire Mukesh Ambani's telecom giant, Reliance Jio.
Samsung pushed India's tax authority to drop the scrutiny, saying the component did not attract tariffs and officials had known its classification practice for years.
But customs authorities disagreed in a confidential January 8 order that is not public but was reviewed by Reuters.
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Samsung "violated" Indian laws and "knowingly and intentionally presented false documents before the customs authority for clearance", Sonal Bajaj, a commissioner of customs, said in the order.
Investigators found that Samsung "transgressed all business ethics and industry practices or standards in order to achieve their sole motive of maximising their profit by defrauding the government exchequer," Bajaj added.
Samsung (005930.KS), opens new tab was ordered to pay 44.6 billion rupees ($520 million), consisting of unpaid taxes and a penalty of 100%.
Seven India executives face fines of $81 million, among them the network division's vice president, Sung Beam Hong, Chief Financial Officer Dong Won Chu and Sheetal Jain, a general manager for finance, as well as Nikhil Aggarwal, Samsung's general manager for indirect taxes, the order showed.

"The issue involves the interpretation of classification of goods by customs," Samsung said in a statement, adding that it complied with Indian laws. "We are assessing legal options to ensure our rights are fully protected."
India's customs authority and the finance ministry did not respond to Reuters' queries. Reliance also did not respond.
The incident comes as India toughens oversight of foreign companies and their imports.
Volkswagen and New Delhi are locked in a legal battle in which the automaker is challenging a record demand of $1.4 billion in import back taxes on grounds of misclassifying car parts.
The German company denies any wrongdoing in what it called a "matter of life and death" for its India business, but the dispute has rekindled foreign investors' fears over tax tussles.

'REMOTE RADIO HEAD'​

The Samsung investigation began in 2021 when tax inspectors searched its offices in the financial capital of Mumbai and Gurugram near New Delhi, seizing documents, emails and some electronic devices. Top executives were later questioned.
The Samsung dispute centers on imports of the "Remote Radio Head", a radio-frequency circuit enclosed in a small outdoor module that tax officials called "one of the most important" parts of 4G telecoms systems.

From 2018 to 2021, Indian officials found, Samsung paid no dues on imports worth $784 million of the component from Korea and Vietnam.
The component fitted on telecoms towers transmits signals and is subject to a tariff, the government said, though Samsung disagreed on how it functions.
Samsung vehemently defended its classification, backed its case with four expert opinions, saying the component did not perform the functions of a transceiver and could be imported without any duty, the tax order said.
As counter evidence, tax officials cited 2020 letters from Samsung to the Indian government describing the component as a transceiver, which the government said is "a device which transmits" signals.
Samsung "was very much aware about the right classification of the impugned goods," the tax commissioner added.

 

[Rogue Trader]

All foreign investors got fucked by Indians changing their tax laws to prevent taking profit. The Taiwanese and Chinese manufacturers have already left in disgust. Only our Temasek keeps pumping money into their shithole

 

[eatshitndie]

was in samsung factory in sk 6.9 years ago to see them ship telecom equipment to jio. happy like fuck. now 6.9 years later kena slapped with $699m import tax. this is how cecaland do biz. 1st 6.9 years of honeymoon everything ok and dandy with a happy headshake. at the 7th year stab you in the back. they will do the arse reaming with sinkie investors too after 6.9 years. just prepare karchng with ky gel.

 

[syed putra]

All foreign investors got fucked by Indians changing their tax laws to prevent taking profit. The Taiwanese and Chinese manufacturers have already left in disgust. Only our Temasek keeps pumping money into their shithole

If its not taxes, its possible corrupt practices which india will charge these investors. Unless you have a local partner.

 

[congo9]

Hahah.
Cannot take profit out from your investment ?
Like that you create jobs and provide job for their own people. They kpkb.

 

[eatshitndie]

Hahah.
Cannot take profit out from your investment ?
Like that you create jobs and provide job for their own people. They kpkb.

for some lucky investors they let you earn profit but they must have 69% cut of the profit. in this case it was around 63%. $601m out of $955m. so considered “lucky” as it was below the sextortion limit. vodafone kena worse. paid billions for 15-year license, and when they turned cash flow positive after 6.9 years, the local legislature changed the law and charged their full profit amount in the billions for yearly license (instead of the 15-year license). sinkie investors should do due diligence and know that yet plunge head in into a market infested with poisonous snakes. very goondu. sure lose money in the medium and long term. short term wise looked good on paper (honeymoon period).

 

[Eisenhut]