Cadbury Plc, now part of Mondelez International Inc, used a nonexistent factory in India to avoid about $46 million in taxes, the Wall Street Journal reported on Tuesday, citing a report by the Indian tax authorities.
Cadbury's Indian unit manipulated invoices and other documents to get an exemption from taxes available to companies that began production in new plants in Himachal Pradesh by March 31, 2010, the Journal said.
The company was reviewing the contents of the show-cause notice and was cooperating fully with the Indian authorities, the Journal said, quoting a Mondelez spokesman.
The Wall Street Journal cited a report by Indian tax authorities that said that Cadbury's Indian unit manipulated invoices to evade taxes.
Mondelez could not be immediately reached for comment by Reuters.