Cadbury accused of evading taxes in India: Report

MUMBAI (AFP) - Indian tax authorities have accused the local unit of chocolate giant Cadbury of evading US$46 million (S$57 million) in taxes by pretending to produce sweets at a factory that did not exist, a report said on Wednesday.

Cadbury India manipulated invoices and other documents to get a tax exemption for companies that began production in new plants in the northern state of Himachal Pradesh by March 31, 2010, the Wall Street Journal reported.

But the Directorate General of Central Excise Intelligence, which conducted the investigation, concluded that the plant could not have existed by 2010 as the company had not received the necessary government approvals, the WSJ said.

Cadbury India, controlled by international snacks maker Mondelez International, said it was "reviewing" the notice from the tax authorities and will respond within the 30-day period granted to it.