Samsung Challenges $520 Million Indian Tax Demand, Cites Reliance Practices

Samsung is contesting a $520 million tax demand from Indian authorities, arguing that it is being unfairly targeted for allegedly misclassifying imports of networking equipment between 2018 and 2021. The company claims Indian officials were aware of its import classification practices, as Reliance Jio had previously imported the same equipment in a similar manner without paying tariffs from 2014 to 2017. Samsung's legal filings state that customs authorities never questioned their classification and that Reliance Jio had even been warned about this import practice in 2017, but did not inform Samsung. This dispute highlights broader concerns among foreign companies regarding India's import tax enforcement, as Volkswagen is also challenging a significant tax demand on similar grounds. Samsung asserts that the business model was transparent and that authorities' awareness undermines the basis for the tax claim. Both Indian tax authorities and Reliance Jio have declined to comment on the ongoing issue.