The Income Tax Department on Thursday (November 7) carried out searches at multiple Truecaller offices across India. The tax authorities’ raids at the local offices of the Swedish company are a part of an investigation into alleged tax evasion, a report has said.
As per news agency PTI, tax officials stated that the searches were conducted to gather information and examine documents related to potential tax evasion, including concerns surrounding transfer pricing practices. Truecaller has offices in Bengaluru, Mumbai and Gurugram.
What Truecaller has to say
In a statement released today, Truecaller confirmed the searches, stating that its India offices were "visited by Indian Tax officials" on Thursday, November 7, 2024.
“This came without prior notice and Truecaller is currently awaiting official confirmation and communication from the tax departments,” said the company’s statement, emphasising its cooperation with the authorities
“This is not an uncommon practice and Truecaller will cooperate fully with the relevant authorities,” Truecaller added.
Truecaller maintained that it is "not subject to any tax investigation in India outside the routine tax audits" and that it has "always paid all taxes due in India and all regions where it operates." The company further stated that its financial statements have consistently received unqualified audit opinions.
The company said its transfer pricing policy for its intra-group transactions is consistent with the internationally accepted standards.
“The purpose is to ensure that Truecaller pays tax in a way that is correct from the perspective of both the Swedish and the Indian tax authorities. The policy is continuously independently reviewed to ensure that it meets the tax law requirements of both countries,” the company noted.
Rishit Jhunjhunwala is new Truecaller CEO
The raids come a day after Truecaller appointed Rishit Jhunjhunwala, the current chief of products, as its new CEO. Jhunjhunwala has worked for Truecaller since 2015 and is also the managing director of the company's India division. He will take over his new role on January 9, after Alan Mamedi steps down.
Co-founders Alan Mamedi and Nami Zarringhalam said in a letter that they have decided to give up their operational duties at Truecaller from June 30, 2025.
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