Infosys to pay $800K to settle worker misclassification, tax fraud charges. The State of California had alleged that between 2006 and 2017, approximately 500 Infosys employees were working in the State on Infosys-sponsored B-1 visas rather than H-1B visas.
Indian IT major Infosys has agreed to pay $800,000 (nearly 75.6 crore) to settle allegations of misclassification of foreign workers and tax fraud, officials said on Tuesday.
Infosys will pay California $800,000 to resolve allegations that, between 2006 and 2017, approximately 500 Infosys employees were working in the Atate on Infosys-sponsored B-1 visas rather than H-1B visas, California Attorney General Xavier Becerra said.
Motech Software – How Reliance stashed #BlackMoney in Swiss Banks & later snapped all ties with shell firm after money laundering probe initiated. The biggest Indian account holder with nearly USD 500 million in Geneva branch, its website now hosts porn.https://t.co/f875nwzOsH
— GreatGameIndia (@GreatGameIndia) September 28, 2019
This misclassification resulted in Infosys avoiding California payroll taxes such as the unemployment insurance, disability insurance, and employment training taxes. H-1B visas also require employers to pay workers at the local prevailing wage, an official statement said.
“Today’s settlement shows that attempting to evade California law doesn’t pay. Infosys brought in workers on the wrong visas in order to underpay them and avoid paying taxes. With this settlement, California has been made whole,” Mr. Becca said.
In the settlement, Infosys, however, denied the allegations and asserted of no wrongdoings.
Further, the company on Wednesday informed Indian stock exchanges that it has reached a settlement with California Attorney General.
In the regulatory filing, it said the case is being dismissed with prejudice and was reached to avoid the time, expense, and distraction of protracted litigation on allegations dating back more than 13 years.
“The agreement – which notes that Infosys strongly disputes the allegations and in which Infosys admits no wrongdoing – will result in the case being dismissed..” Infosys said.
The company asserted that it maintains robust policies and procedures to ensure adherence with all applicable regulations and laws.
It has been suggested that KKR had a role to play in Cafe Coffee Day founder V G Siddhartha's death. But what is KKR? Who owns it? What has KKR to do with the CIA?
Here we chart a brief overview of the various covert operations of KKR in India.https://t.co/N9DYF436V8
— GreatGameIndia (@GreatGameIndia) September 14, 2019
In 2017, Infosys had agreed to pay the State of New York $1 million to settle allegations of submitting wrong documents to federal authorities.
The Californian settlement that was carried out in November was released to media on Tuesday.
California initiated legal actions against Infosys after a complaint was filed by whistleblower Jack “Jay” Palmer, a former Infosys employee. Mr. Palmer had sued Infosys in 2017.
PTI
GreatGameIndia is a journal on Geopolitics and International Relations. Get to know the Geopolitical threats India is facing in our exclusive book India in Cognitive Dissonance.
Send in your tips and submissions by filling out this form or write to us directly at the email provided. Join us on Telegram for more intel and updates.
Support GreatGameIndia
