Cadbury accused of dodging $46m in taxes

Chocolate manufacturer, Cadbury, has been accused of avoiding $46m in taxes by misleading Indian authorities about production from a new factory in India.

In 2005, Cadbury set up a factory in India's Himachal Pradesh to take advantage of a 10 year 'tax holiday' that the country was offering companies that commence production by March 31, 2010, the Huffington Post reports.

It's alleged that Cadbury told Indian authorities it set up another plant next to an existing one in 2009, which should also be exempt from tax until 2019, however it turns out the second plant was operational by the scheme's cut-off date.

According to a Cadbury representative quoted in the Wall Street Journal, the expansion of the existing factory was misrepresented as the development of a completely new one.

Tax demand notices were sent to Cadbury and its executives in late February and it has a month to respond. Tax consultants have said that if it's established that the second factory became operational after 31 March, 2010, the confectionery giant will have to pay taxes, however it's expected that Cadbury will challenge the notice.


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