Samsung Faces $601M Tax Penalty in India

India has ordered Samsung to pay $601 million in taxes and penalties for misclassifying telecom equipment imports to evade tariffs. The amount represents a significant portion of Samsung India's 2023 profit. The company can challenge the order in court. Officials found that Samsung knowingly misrepresented key telecom components to avoid duties of 10% or 20%.

Investigators claim Samsung violated business ethics by falsifying documents to evade taxes. Seven executives, including senior officials, face fines totaling $81 million. Samsung denies wrongdoing, arguing the dispute stems from differing interpretations of product classification. The company is evaluating legal options to protect its rights.

The case highlights India's growing scrutiny of foreign companies. Authorities seized documents and questioned executives during a multi-year probe into Samsung’s "Remote Radio Head" imports. Similar disputes, like Volkswagen's $1.4 billion tax case, indicate India’s tightening stance on import regulations.