Tata Comm Unit Reaches Tentative Tax Settlement With Canadian Authorities

Tata Communications Ltd. said its Canadian subsidiary has reached an in-principle settlement with tax authorities in Canada over a dispute involving ₹10.71 billion in tax payments. The disagreement centred on the pricing methodology used by Tata Communications (Canada) Ltd., which was rejected by both federal and provincial tax agencies in Quebec and Ontario.

The parties are now preparing formal documents, including a settlement agreement and partial consent to judgment, to implement the resolution. An update will be submitted to the Canadian tax court by Sept. 15, the company said in a stock exchange filing.