The company said it received notification from Canada’s Finance Ministry on May 9, informing it about the penalty.
(Photo: iStock)
The Canadian government has fined approximately Rs 82 lakh (134,000 Canadian dollars) on the IT giant Infosys for allegedly failing to fulfil the complete employee health tax obligation for the financial year ending December 31, 2020.
“Penalty imposed on alleged underpayment of Employee Health Tax for the year ended December 31, 2020,” Infosys stated in the filing.
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The company said it received notification from Canada’s Finance Ministry on May 9, informing it about the penalty. The precise penalty amount specified in the filing is 134,822.38 Canadian dollars.
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The company said the imposition of the fine would not significantly impact its financials, operations, or other commitments.
In January this year, Infosys faced a penalty of $225 for the alleged violation of “short payment of modified business tax” for two quarters by the US taxation authority.
Short payment refers to partial or reduced payment made that is lesser than the invoiced amount.
In August last year, the Florida Department of Revenue imposed a similar penalty worth $76.92 for Infosys’s tax payment shortfall.
Further in October, the Commonwealth of Massachusetts imposed another fine of $1,101.96 on Infosys for rejecting the family and medical paid leave returns for the first and second quarters of 2023.
The Indian Commercial Taxes Department has also taken action against the company. In September, the assistant commissioner of the Kelambakkam assessment circle in Chennai, sent a demand notice of Rs 26.5 lakh for integrated goods and services tax (IGST), along with penalty and interest charges.
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