Truecaller expects $90 million India tax claim over transfer pricing
Sweden’s Truecaller said on Monday that it expects Indian authorities to pursue a tax claim of approximately 900 million Swedish crowns ($90.85 million), inclusive of interest. This claim stems from an audit of its transfer pricing practices within the country.
The caller identification app stated it received the first formal transfer pricing order from India for the 2022-23 financial year, with a formal tax demand expected to follow.
The order, which addresses the allocation of revenue among Truecaller entities, proposes an adjustment of 270 million crowns in additional tax and interest, the company said.
For the period spanning financial years 2018-19 through 2023-24, Truecaller projects a total liability of about 900 million crowns. However, it expects to recover around 350 million crowns in Sweden under double-taxation relief, positioning its net potential exposure at approximately 550 million crowns.
Truecaller firmly maintains that all claims are unfounded, asserting its transfer pricing policy aligns with arm’s-length principles verified by external experts. The company added that it intends to appeal the order through Indian tax tribunals and courts.
“The amount stated in this first transfer pricing order from the Indian tax authorities is within the interval we have expected. Therefore, the total bank guarantee amount we expect to have to put up until this transfer pricing issue is resolved, through the bilateral process, can be managed well with our existing liquidity, including the term loan we raised this summer. It will not have any negative effects on our operations or our ability to invest in important revenue-driving opportunities going forward,” said Odd Bolin, CFO of Truecaller, in a statement.
