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SABMiller faces final demand for huge Indian tax bill

on 19/04/11 at 8:32 am

Industry

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.

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