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The Swedish caller ID app says Indian tax authorities want to revise how revenue was allocated between its group companies. The dispute could leave it facing a gross tax claim of about 900 million Swedish crowns
The company said on Monday it expects Indian authorities to seek about 900 million Swedish crowns, roughly $90.85 million, including interest, after a transfer pricing audit covering multiple financial years.
Truecaller insists its tax practices comply with international rules and says it will challenge the order through India’s tax tribunals and courts.
What is the dispute about?
The case centres on transfer pricing, the price charged in transactions between related companies within the same corporate group.
Indian tax authorities have questioned how revenue was allocated between Truecaller entities, issuing the first formal transfer pricing order for the 2022-23 financial year. The order proposes an adjustment of 270 million Swedish crowns in additional tax and interest, while a formal tax demand is expected to follow.
The company said it now expects similar adjustments across the financial years from 2018-19 to 2023-24, taking the total potential liability to around 900 million Swedish crowns.
How much could Truecaller actually pay?
While the headline figure is close to $91 million, Truecaller says the final financial impact could be lower.
The company expects to recover around 350 million Swedish crowns in Sweden through double taxation relief, reducing its net potential exposure to roughly 550 million crowns.
Truecaller plans to appeal
Rejecting the tax authority’s conclusions, the company said its transfer pricing policy follows the internationally accepted arm’s length principle and has been verified by external experts.
More from Business“Truecaller firmly reiterates that all claims are unfounded,” the company said, adding that it would contest the order through India’s tax tribunals and courts.
A market that matters
India is Truecaller’s biggest market, accounting for roughly three quarters of the company’s revenue.
The latest dispute comes nearly two years after Indian tax officials visited the company’s India offices during what Truecaller then described as a routine tax audit, saying it was cooperating fully with authorities and was not facing any investigation beyond standard tax reviews.
The case adds to a long list of transfer pricing disputes involving multinational companies operating in India, where tax authorities have increasingly scrutinised how profits are distributed across global corporate structures.
