Big Blue is in a fight with India over $865 million in unpaid taxes that authorities say the multinational technology company owes in that country.
The Indian unit of IBM said Wednesday it will “aggressively defend itself” through legal means against the tax demand, reported Agence France Presse.
IBM has not said how much in taxes authorities are seeking but India’s media has reported that the technology company is $865 million in arrears for allegedly under-reporting 2008-2009 earnings.
Those reports say that India’s tax department has alleged that IBM did not fully report its Indian export earnings. A spokesman for the tax department would not immediately comment to AFP.
IBM denied any wrongdoing.
“IBM does not agree with the tax department’s claims and will aggressively defend itself through the appropriate judicial process,” an IBM India spokeswoman told AFP.
AFP reports that the case is is the latest pitting a multinational against Indian income tax authorities, and comes as the country has been seeking to portray itself as more investor-friendly to draw much-needed foreign investment.
India is also locked in tax battles with Vodafone, Nokia and Royal Dutch Shell, among other international companies.
A spokesman for the tax department would not immediately comment.
IT services companies in India normally receive tax exemptions on profits earned from the export of software and related services from facilities in so-called software technology parks and special economic zones. But different interpretations of the tax rules has sparked disputes as the tax department in some instances denies these exemptions.
Armonk, N.Y.-based IBM operates one of its largest campuses in Research Triangle Park.
