Feb 3 (Reuters) - Anglo-Dutch oil major Royal Dutch ShellPlc said its Indian unit has been in talks with localauthorities over a tax dispute, making it the latest globalcompany to have a run-in with tax officials in the country.
India's Mint newspaper, citing a person familiar with thematter, reported on Saturday tax authorities accused Shell'sIndian unit of underpricing a transfer of shares to a relatedoverseas company by about $2.8 billion and thereby evadingtaxes.
Television channel ET Now carried a similar report lastThursday.
"Shell India tax experts have indeed been in discussionswith the Indian tax authorities on this issue over the past weekand do not agree with their views," a Shell spokesman said in astatement emailed in reply to a query from Reuters on the reportin Mint.
"The tax officer has now made an assessment and passed anorder which we have not yet received. We will review the orderand initiate consequent appropriate actions," the spokesman saidin an email late on Saturday to Reuters.
The response did not address all of the details raised inreports by Mint and ET Now.
Indian tax officials were not available for comment. Severalcalls to a spokeswoman of the tax department in Mumbai wentunanswered.
The Shell India case comes amid uncertainty about theoutcome of a more-than $2 billion tax dispute between VodafoneGroup Plc and India's tax office that has dentedcorporate investor confidence in the country.
Vodafone, the largest corporate investor in India, hasrepeatedly clashed with Indian authorities over taxes since itbought Hutchison Whampoa's local mobile business in2007. While India's Supreme Court backed Vodafone's positionthat it does not owe tax on the deal, a subsequent law changeenabled India to impose tax on mergers retrospectively.
Indian officials and Vodafone have held recent talks on thedispute.