India Demands $601M from Samsung for Tax Evasion

Indian tax authorities have issued a demand for Samsung and its executives to pay $601 million in back taxes and penalties, alleging that the company dodged tariffs on telecom equipment imports. The demand, based on the misclassification of a critical component used in mobile towers, represents a significant portion of Samsung's $955 million net profit in India last year. Samsung argues that the components were tariff-exempt and that their classification had been accepted by officials for years. However, customs authorities concluded that Samsung intentionally presented false documents to evade duties, resulting in a 100% penalty. Seven Samsung executives, including the vice president of the network division, are facing fines totaling $81 million. Samsung is exploring legal options to contest the decision, maintaining that it complies with Indian laws.