Cadbury used unfinished factory to avoid tax

Cadbury Plc, now part of Mondelez International Inc (MDLZ.O), used a nonexistent factory in India to avoid about $46 million in taxes, the Wall Street Journal reported on Tuesday, citing a report by the Indian tax authorities. Cadbury’s Indian unit manipulated invoices and other documents to get an exemption from taxes available to companies that began production in new plants in the northern Indian state of Himachal Pradesh by March 31, 2010, the Journal said. The Directorate General of Central Excise Intelligence, which conducted the investigation, concluded that the factory could not have existed by the deadline as the company had not received the necessary approvals from government agencies, the Journal said. Mondelez is reviewing the content of the show-cause notice from India’s excise department, spokesman Michael Mitchell told Reuters in an emailed statement. More…

News selected by Covalence | Country: India | Company: Mondelez, Shell, LG Electronics, Vodafone  | Source: Reuters