Income Tax Department conducts search on Truecaller India offices in tax investigation

The Indian offices of the global caller ID company Truecaller were searched by the Income Tax Department on November 7, 2024, on charges related to tax evasion, it is learnt from official sources. As Stockholm-based firm re-issued statement to describe what was transpired, one of the offices in Bengaluru, Mumbai, or Gurugram released a statement stating it was indeed cooperating with tax officials and declaring the search operations had been conducted without any prior intimation. It has reportedly been carrying out the investigation regarding the collection and study of information and documentation pertaining to alleged tax evasion issues regarding TP, among others.

The firm had been informed that tax officials did visit the offices of the company in India on November 7, 2024, said a public declaration by Truecaller. Such a statement was issued declaring that the company is cooperating fully with the concerned authorities and awaits official confirmation and further communication from the tax departments. It further emphasized that such actions are not uncommon and assured that the investigation would be fully supported by Truecaller.

The company stated that it is not under any tax investigation in India except for the routine tax audits. Truecaller also announced that its financial statements have always enjoyed unqualified audit opinions, and that it has always made diligent payments of all the taxes charged in India and in each region where it operates.

On transfer pricing, the company avers that its transfer pricing policy for intercompany transactions complies with the arm’s length principle as generally accepted internationally. According to Truecaller, its approach would ensure that taxes are paid accurately in Sweden and India in compliance with the tax laws of both countries. The policy is also subject to regular independent review to ensure compliance with tax laws in both countries.

This investigation by the Indian tax authorities about Truecaller is one of many initiatives that are aimed at enforcing tax compliance by multinational corporations in this region. Truecaller assured its commitment to transparency and cooperation with relevant authorities in India throughout the process.