This week, Samsung was ordered to pay a penalty of $601 million (~RM 2.66 billion) to the Indian government after being found to have evaded paying tariffs on telecommunications equipment brought into the country. Samsung received a warning notice in 2023 after the equipment was sold to local telecommunications company Reliance Jio.
For your information, The payment of almost RM 3 billion consists of a fine of 44.6 billion Rupees (~RM 2.3 billion) for unpaid tariffs and a 100% penalty, and the remainder is a fine to be paid by seven Samsung executives who were found to be involved in the process of evading tariffs.
In India, tariffs of up to 20% are imposed on telecommunications equipment imported from foreign countries. In an official statement issued by Samsung, they said they would appeal in court. According to them, this issue involves the interpretation of the classification of imported goods.
Indian authorities have recently been investigating several foreign technology companies accused of trying to evade taxes. In 2022, the Indian Finance Ministry accused Oppo and Xiaomi of being involved in tax evasion attempts worth ~RM 2.274 billion and ~RM 3.2 billion, respectively.
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