On Wednesday, the Income Tax Department raids 36 locations belonging to a pharmaceutical company with headquarters in Bengaluru across nine states and seized gold and diamond jewellery as well as more than one crore rupees in cash. According to the news agency, the pharmaceutical company is suspected of dodging taxes.
On Wednesday, the Income Tax Department inspected numerous locations connected to a pharmaceutical company with offices in Bengaluru and discovered irregularities relating to tax evasion, recovering gold and diamond jewellery in addition to cash totaling 1.2 crores. According to a statement made public by the Central Board of Direct Taxes, the department raids 36 locations of the business spread over nine states and Bengaluru on July 6 and discovered a significant amount of incriminating documentation in the form of documents and digital data.
Officials from the tax department are said to have now confiscated undeclared cash up to the amount of Rs. 1.20 crore and gold and diamond jewellery worth more than Rs.1.40 crore. The unnamed corporation, which has offices in more than 50 nations, manufactures pharmaceutical goods including Active Pharmaceutical Ingredients (API). According to the evidence gathered against the company, tax was avoided by accounting “unallowable” expenses for free gifts given to medical professionals under the heading “Sales and Promotion.”
The company has been charged with dishonestly spending close to $1 billion to promote its goods by providing doctors with gifts and travel expenses under the guises of “promotion and propaganda,” “symposia and seminars,” “medical advisories,” etc. According to officials, the corporation has utilised a variety of fraudulent strategies, such as artificially inflating deductions and improper expense allocation, to escape more than 300 crore in taxes.