HP’s woes continue with $325m Indian tax evasion claim
- Reduce text size Decrease text size
- Increase text size Increase text size
- Print article Print
- Jump to comments Comment
- Share this article Share
- Email article to a friend Email
IT giant firmly denies allegations of customs duty evasion, and is cooperating with the Indian autorities’ investigation
Hewlett-Packard’s difficult year continued this week when India’s Directorate of Revenue Intelligence accused the IT giant of customs duty evasion to the tune of Rs 1,450 crore ($325 million).
The company has strenuously denied what the Times of India describes as “the biggest customs duty evasion by any company in India”, saying it will challenge the allegations ‘through the judicial process’.
The DRI alleges that HP’s Indian division, Hewlett Packard India Sales Pvt Ltd, undervalued computer equipment it imported to the subcontinent, thereby reducing the amount of duty owed.
The news continues a run of negative publicity for HP. Last month, it emerged that company is under investigation by authorities in Germany and Russia over bribery claims.
This follows a high-profile legal defeat in the UK by BSkyB, which sued over a failed customer relationship management (CRM) deployment, as well as industrial action over staff pay and allegations of selling defective equipment in China.
