Feb 3 (Reuters) - Anglo-Dutch oil major Royal Dutch Shell
Plc said its Indian unit has been in talks with local
authorities over a tax dispute, making it the latest global
company to have a run-in with tax officials in the country.
India's Mint newspaper, citing a person familiar with the
matter, reported on Saturday tax authorities accused Shell's
Indian unit of underpricing a transfer of shares to a related
overseas company by about $2.8 billion and thereby evading
Television channel ET Now carried a similar report last
"Shell India tax experts have indeed been in discussions
with the Indian tax authorities on this issue over the past week
and do not agree with their views," a Shell spokesman said in a
statement emailed in reply to a query from Reuters on the report
"The tax officer has now made an assessment and passed an
order which we have not yet received. We will review the order
and initiate consequent appropriate actions," the spokesman said
in an email late on Saturday to Reuters.
The response did not address all of the details raised in
reports by Mint and ET Now.
Indian tax officials were not available for comment. Several
calls to a spokeswoman of the tax department in Mumbai went
The Shell India case comes amid uncertainty about the
outcome of a more-than $2 billion tax dispute between Vodafone
Group Plc and India's tax office that has dented
corporate investor confidence in the country.
Vodafone, the largest corporate investor in India, has
repeatedly clashed with Indian authorities over taxes since it
bought Hutchison Whampoa's local mobile business in
2007. While India's Supreme Court backed Vodafone's position
that it does not owe tax on the deal, a subsequent law change
enabled India to impose tax on mergers retrospectively.
Indian officials and Vodafone have held recent talks on the