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AB InBev's Indian unit accused of avoiding tax

Brewer embroiled in controversy over royalties

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

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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