SABMiller faces final demand for huge Indian tax bill
on 19/04/11 at 8:32 amIndustry
India’s regulatory authorities have issued a final demand for beer brewing giant SABMiller to pay a $39.5m (£24m) tax bill following its acquisition of Australian brewer Fosters’ assets in the country five years ago.
The retrospective tax bill, which includes interest on the disputed sum, follows a series of claims from the Finance Ministry in New Delhi which aims to secure tax on deals completed outside of India.
The London-listed company has argued in the Mumbai High Court that the deal was not eligible for tax because it was agreed by two non-resident firms.
Following the tax demand, Foster’s announced a potential liability to its shareholders last week. As part of the acquisition, the Australian brewer and SABMiller had agreed a tax indemnity.