AB InBev's Indian unit accused of avoiding tax

Brewer embroiled in controversy over royalties

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The Indian income tax department alleged that SABMiller had been avoiding tax on royalty payments for the last seven years.

ANGARIKA GOGOI and GANGADHAR PATIL, Contributing writers

BANGALORE, India -- Indian authorities have accused global brewer SABMiller of avoiding paying tens of millions of dollars in taxes since 2011 by renaming royalty transactions as a management services.

The New Delhi-based Authority of Advance Rulings, a body that adjudicates cases of income tax liability involving nonresidents in India, said in a June 2018 order that the services provided by Netherlands-based SABMiller Management to its Indian units qualify as technical know-how and are thus taxable under Indian law.

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