The country’s tax collection agency says that IBM reported less income than it actually generated from operations in India during the 2009 tax year, which ends in March. Indian tax authorities indicated that IBM owns them an additional $865 million, the Wall Street Journal notes.
An unnamed Indian tax agency official told the Journal that IBM had underestimated its local income by as much as 80% during that tax year.
IBM has the option of contesting the agency’s findings and can appeal the new assessment.
Earlier this year, Apple (AAPL) drew fire from critics and lawmakers for using Irish laws to reduce its international taxes.
Shares of IBM rose slightly in Friday afternoon trading.