Chennai: The income tax department has revived its demand that Cognizant provide documents related to the bribes it had paid to Tamil Nadu government officials to secure approvals for a building. It has also begun inquiring into Cognizant’s withdrawal of a depreciation claim on the building, people familiar with the development told ET.
“They (Cognizant) had withdrawn the claim of depreciation on the asset for which improper payments were made,” an income tax official told ET. “Our inqung into Cognizant’s withdrawal of a depreciation claim on the building, people familiar with the development told ET.
“They (Cognizant) had withdrawn the claim of depreciation on the asset for which improper payments were made,” an income tax official told ET. “Our inquiries are related to that.”
The information technology company has until March 10 to provide documents related to the illegal payments, the person said. Income tax rules allow companies to claim depreciation on cThe information technology company has until March 10 to provide documents related to the illegal payments, the person said. Income tax rules allow companies to claim depreciation on commercial buildings.
Cognizant had voluntarily disclosed to the US Securities and Exchange Commission in September 2016 the payment of bribes after it uncovered the 2014 payments in internal audits.
Two Execs Indicted
The firm also reported the episode to the US Department of The company said February 15 that it will pay $28 million as penalty and that the US justice department will not take further action, considering its “prompt self-reporting” and compliance enhancements. The Indian income tax department had sought records relating to the bribe payments after Cognizant reported them to the US authorities in 2016, but the software exporter had said at the time that it was unable to submit them in view of ongoing court proceedings in that country.
“They (Cognizant) had withdrawn the claim of depreciation on the asset for which improper payments were made,” an income tax official told ET. “Our inqung into Cognizant’s withdrawal of a depreciation claim on the building, people familiar with the development told ET.
“They (Cognizant) had withdrawn the claim of depreciation on the asset for which improper payments were made,” an income tax official told ET. “Our inquiries are related to that.”
The information technology company has until March 10 to provide documents related to the illegal payments, the person said. Income tax rules allow companies to claim depreciation on cThe information technology company has until March 10 to provide documents related to the illegal payments, the person said. Income tax rules allow companies to claim depreciation on commercial buildings.
Cognizant had voluntarily disclosed to the US Securities and Exchange Commission in September 2016 the payment of bribes after it uncovered the 2014 payments in internal audits.
Two Execs Indicted
The firm also reported the episode to the US Department of The company said February 15 that it will pay $28 million as penalty and that the US justice department will not take further action, considering its “prompt self-reporting” and compliance enhancements. The Indian income tax department had sought records relating to the bribe payments after Cognizant reported them to the US authorities in 2016, but the software exporter had said at the time that it was unable to submit them in view of ongoing court proceedings in that country.
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