Infosys, founded by PM Sunak’s father-in-law, in tax dispute with UK authorities
(L) Infosys founder Narayana Murthy. (R) UK PM Rishi Sunak
The Indian IT firm, Infosys, has run in a dispute with the UK’s tax agency over a multimillion-pound corporation tax bill.
According to the Telegraph newspaper, the multinational firm—founded by British Prime Minister Rishi Sunak’s father-in-law Narayana Murthy—owes £20 million for a period from 2014 to 2017.
Infosysacknowledged the dispute and said that it had opened an appeal against HM Revenue & Customs’s calculation. It also denied any wrongdoing and added that it disagrees with the tax assessment.
“Infosysprovides details of certain ongoing disputes with various regulatory authorities, including this specific tax matter with HMRC,” a spokesman was quoted as saying.
“The company has filed an appeal against a tax assessment in the UK and obtained a stay on the payment of the tax demand from HMRC.”
A spokeswoman for HMRC said, “We cannot comment on identifiable taxpayers.”
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UK PM Rishi Sunak sacks Nadhim Zahawi, BBC Chief next?
The development comes days after Sunak axed Nadhim Zahawi as Conservative Party chairman over his tax affairs.
It was found that Zahawi committed seven breaches of the ministerial code through his repeated failure to disclose HMRC’s investigation into him and the details of the settlement they agreed, including a penalty for tax avoidance. Sunak is stillfacing scrutinyover his handling of the affair.
Though Narayan Murthy quit Infosys in 2014 following a clash with the company’s subsequent leadership, his daughter and Sunak’s wife Akshata Murty still owns just over 0.9 per cent of the Bangalore-based company.
In April last year, local media reported that Akshata saved millions of pounds while living in No 11 by using non-dom status to minimise her tax bill.
The tax break, which costs thousands of pounds to maintain, means that a person can be a UK resident but only pay tax on the British – rather than worldwide – income. Murty resigned her non-dom status for income tax purposes shortly afterward, according to Guardian newspaper.
(With inputs from agencies)
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