

Google India gets Income-Tax Dept notice for not revealing correct revenues - zerop
http://economictimes.indiatimes.com/tech/internet/google-india-gets-i-t-notice-google-has-not-revealed-correct-revenues-as-per-tax-assessment-order/articleshow/11025572.cms

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kaze
From the below link: [http://economictimes.indiatimes.com/tech/internet/govt-
wante...](http://economictimes.indiatimes.com/tech/internet/govt-
wanted-358-items-removed-from-googles-services-including-youtube-orkut-in-jan-
jun-period/articleshow/11020860.cms)

"In addition, we received a request from a local law enforcement agency to
remove 236 communities and profiles from Orkut (Google's social networking
site) that were critical of a local politician. We did not comply with this
request, since the content did not violate our community standards or local
law," it said.

And then the tax notice happens.

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nextparadigms
Interesting how this came days after demanding Google (and the others) pre-
screen and censor user content. In a country filled with corruption it's very
easy to bust businesses on _anything_.

~~~
fennecfoxen
For reference, the 2011 Transparency International "Corruption Perceptions
Index" infographic again: [http://www.gizmag.com/transparency-international-
corruption-...](http://www.gizmag.com/transparency-international-corruption-
perceptions-index/20730/picture/149952/)

India is _squarely_ in the Red Zone.

Notice also how well the corruption index correlates with national prosperity.
All the rich Western countries + Japan are yellow/orange... well, Italy and
Greece are red, but everyone knows their economy is in the toilet, and I mean
even more so than is usual these days...

~~~
digamber_kamat
Incometax department in India is a harlot working for the Congress party
government which itself is ruled by an Italian lady suspected to have Nazi and
KGB connections in past. Any business, person standing against government
receives income tax notice. A people driven movement Indian Against Corruption
was also targeted in similar fashion so was Yoga Guru Ramdev baba. This is
India. One of the most corrupt country in the world.

~~~
kaze
There is proof of the Government's corruption, and some pointers to indicate
it misuses the Income Tax department. But what proof can you present of the
'Italian lady's Nazi and KGB connections'? Let us keep discussions on this
forum free of innuendo.

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suprgeek
Google does deserve to get rapped for pulling the shenanigans that it does
with the Irish taxation hole.

The timing of this notice is a bit suspicious however. The Income Tax
department is one of the favourtie ways that the those in Power decide to get
their Vendetta and pressurize those that speak out.

Check out this Income Tax Notice that a popular Anti-Corruption crusader
(Arvind Kejriwal) got just days after launching an agitation
[http://www.deccanchronicle.com/channels/nation/north/annas-a...](http://www.deccanchronicle.com/channels/nation/north/annas-
aide-arvind-kejriwal-attempts-fight-income-tax-notice-907) This govt. really
has no compunctions using any and all means to get its way. It fully expects
that Google will now become more pliant the next time they request something.
OR ELSE...

Mafioso Tactics at their best.

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trapped123
This is Govt Of India's pavlovian response to whenever they feel threatened by
any entity. Their first response is to slap an Income Tax notice on them. They
did the same thing to some of the anti corruption league members when their
movement became too popular for govt's comfort. But for some strange reasons
they are very protective of people who have stored trillions of ill-gotten
assets overseas even though the foreign governments are ready to provide the
information.

~~~
GiraffeNecktie
Happens in China too. For example, with the artist Ai Wei Wei

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Brajeshwar
I haven't read the article but reading the title, something comes to mind
instantly - how Google saves billions of dollars by using a complicated
structure to send most of its overseas profits to tax havens, keeping its
overseas rate at a super-low 2.4 percent.

Ah! Found the article - The Tax Haven That's Saving Google Billions -
[http://www.businessweek.com/magazine/content/10_44/b42010431...](http://www.businessweek.com/magazine/content/10_44/b4201043146825.htm)

So, the government assumes Google India ought to be filing more tax instead of
the meagre that goes into the Indian Treasury?

~~~
copper
Speaking from experience, this kind of thing might - just - also be a clerical
error. Not so long ago, a place I used to work for got one of these notices
because the Tax Department didn't agree with how we had calculated tax.
Accounts did manage to sort it out, in the end.

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yalogin
India hurts itself more than it can hurt Google with this idiotic stunt. The
high speed Internet availability in India is pathetic and so the revenues for
Google in India should be relatively very small. But the perception that the
government is fucking with Google is very bad for India.

This coming from politicians who are the most corrupt is sad. India is not in
as powerful a position as China is to make these kinds of demands. They are
stupid enough to try to saw off the branch they are sitting on.

~~~
dman
If google is breaking the law then the government ought to act against them.

~~~
fennecfoxen
See, that's how they get you. Byzantine laws, so everyone is a criminal
(citizen or corporation), and then they can crush you whenever you don't
kowtow to their demands.

It's not exactly something to celebrate.

I mean, maybe, just possibly, maybe, perhaps, who knows, Google is doing
something deliberately shady and evil here and the government _just happened_
to notice just _days_ after they told some censorship people to sod off. And
if you believe that, I also have this lovely bridge which I would like to sell
you.

You're an enabler.

~~~
luser001
You do realize that they use a similar loophole in the US too to avoid paying
taxes, right? India is calling them on their bullshit, whereas the US Congress
etc have been bought off. Time to buy the Indian politicians also.

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maheshs
People might related this issue with recent indecent of content supervisory,
but I think because of nature of business of google or any other online
company who do business over the world there might be some real issue with
tax. I am not saying google is doing something wrong but they might have to do
things differently.

~~~
digamber_kamat
Income tax department in India in not known to be diligent in any sense. They
havent been after A. Raja., Kalmadi, Sheila Dixit , Chidamberam, Robert Vadra
etc. But the moment someone refuses to bend before the mafia government of
India they suddenly get active. Very fishy.

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themonk
On related note Income-Tax Dept is lead by talented officers, you may read
subtitles on this 4 minute video interview of former Income-Tax Commissioner
<http://www.youtube.com/watch?v=ApQlMm39xr0>

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TheRealmccoy
Finally, Google becomes a real "LOCAL" company in India.

~~~
fennecfoxen
The difference is that Google, if they feel like it, can easily afford to drop
a few million on a legal battle like this one. Would that "LOCAL" indian
businesses were so lucky.

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parfe
Someone must have forgot to send out the weekly bribes. India - Only the 87th
least corrupt nation!

