On Thursday, November 7, 2024, officials from the Income-Tax Department of India conducted a survey operation at the offices of Swedish caller ID platform Truecaller in India. The operation was reportedly part of an investigation into potential tax evasion charges, including issues related to transfer pricing (TP) practices. Truecaller, a global leader in spam identification and call blocking, confirmed that it is fully cooperating with authorities during this investigation.
Truecaller Responds to Tax Survey
In an official statement, Truecaller confirmed that Indian tax officials visited their offices in Bengaluru, Mumbai, and Gurugram on Thursday. The company emphasized that the visit came without prior notice, but it is providing full assistance to the authorities.
"Truecaller is currently assisting the authorities to the full extent at our offices. This came without prior notice and we are awaiting official confirmation and communication from the tax departments," the company stated. Despite the sudden visit, Truecaller reassured the public that the situation is part of routine tax audits and that the company has always complied with tax regulations in India.
Focus on Transfer Pricing and Tax Compliance
The tax officials’ survey is centered around gathering information and reviewing documents related to transfer pricing—a practice used by multinational companies to allocate profits between their subsidiaries in different countries. Truecaller clarified that its transfer pricing policy follows internationally accepted standards, specifically the arm’s length principle, which ensures that intra-group transactions are priced fairly and in compliance with both Indian and Swedish tax laws.
Truecaller also emphasized that it has always paid the taxes due in India and other regions where it operates. The company has consistently received an unqualified audit opinion for its group financial statements, indicating that its financial practices are in line with statutory requirements.
Truecaller’s Commitment to Transparency
As a publicly-listed company, Truecaller reiterated its commitment to transparency and full cooperation with Indian tax authorities. The company assured stakeholders that it is not currently under investigation for any tax issues beyond the regular audits conducted by the tax department.
"The purpose is to ensure that Truecaller pays tax in a way that is correct from the perspective of both the Swedish and the Indian tax authorities," the company stated. It added that the transfer pricing policy is regularly reviewed independently to ensure compliance with the tax laws of both countries.
Truecaller’s Global Reach and Operations
Truecaller, headquartered in Stockholm, Sweden, operates globally, with 425 million monthly active users across its Android and iOS platforms. The app is widely used for identifying unknown numbers and blocking spam calls, offering a significant boost to user productivity and privacy protection. The company has offices in India, which serve as key hubs for its operations in the region.
