After Prem sacking, tax dept launches probe into Reebok dealings
05 May 2012
The Income Tax department has begun scrutinising financial documents and transactions of global sportswear manufacturer Reebok after its owner Adidas recently announced commercial irregularities in its India operations.
The I-T department has collected documents related to sales and purchase made by Reebok during the last financial year as well as trade receipts processed by the company.
"Certain government / regulatory bodies were seeking clarifications about Reebok India Co in regards to the announcement made on Monday, 2 May. We have shared the required details with them," the Adidas group said in a statement.
Adidas AG had on Monday announced from its Frankfurt headquarters Subhinder Singh Prem, the former managing director of the Indian operations of Adidas and Reebok India, had been sacked along with his colleague, chief operating officer Vishnu Bhagat, for ''financial irregularities'' in the Indian operations of Adidas.
Prem subsequently sued his former employer for Rs15 crore in damages, alleging he was wrongfully sacked.
The I-T authorities, who visited the corporate office of Reebok in Gurgaon few days back to obtain documents, are also scrutinising TDS (tax deducted at source) payments made by the company, according to a PTI report.