In a recent development, Truecaller, the Stockholm-based caller identification and spam-blocking app, confirmed that it is cooperating with Indian income tax authorities following raids on its offices in Noida, Mumbai and Bengaluru. These searches were conducted on Thursday as part of a tax investigation, and the company stated that it is awaiting further communication from the tax department regarding the grounds of the investigation.
"Truecaller is currently assisting the authorities to the full extent at our offices," the company noted in a statement. "This is not an uncommon practice, and Truecaller will cooperate fully with the relevant authorities."
Truecaller, with over 400 million active users in India, clarified that it is not under any extraordinary tax investigation beyond routine audits, reinforcing that its financial practices are transparent. The company further noted that its global financial statements have consistently received unqualified audit opinions, reflecting their compliance with international and regional tax requirements.
Truecaller emphasized that its transfer pricing policies - governing intra-group transactions between its offices in Sweden and India - adhere to the internationally accepted arm's length standard. These policies are regularly reviewed to ensure they meet the tax laws of both Sweden and India.
The tax raid comes shortly after Truecaller’s announcement on Wednesday of its new CEO appointment. Rishit Jhunjhunwala, the company’s product chief and head of Indian operations, is set to take over as CEO on January 9, 2025, following co-founder Alan Mamedi's resignation.
This latest incident underscores India’s increased scrutiny on foreign digital businesses, as tax compliance remains a high-priority focus area for authorities amidst the rising prominence of digital services in the country.
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