"Breaking News: Infosys Fined CAD 130K by Canada for Health Tax Underpayment"

"Canada Slaps Infosys with CAD 130K Fine: Health Tax Underpayment Exposed"

The Canadian government has fined global IT services provider Infosys CAD 1,34,822.38 (Rs 82 lakh) for underpayment of the employee health tax for the fiscal year ending December 31, 2020.

Infosys disclosed in a regulatory filing that it received the order from Canada’s Finance Ministry on May 9. “Penalty imposed on alleged underpayment of Employee Health Tax for the year ended December 31, 2020,” as per the filing.

Infosys said the fine will not have a material impact on the company’s financial health, operations, or other activities. The company reassured stakeholders that the financial repercussions are manageable within its existing financial framework.

Shares of Infosys were trading in red, down 0.09 percent at Rs 1,423.50 on May 15, 2024 at 1:34 pm on BSE. The company has a market capitalisation of Rs 5,90,097.73 crore as per BSE.

Infosys announced its Q4 results on April 18, posting a net profit of Rs 7,975 crore for the March quarter, with total revenues reaching Rs 37,923 crore. The company noted that its year-on-year revenues in constant currency terms remained unchanged and saw a sequential decline of 2.2 percent.

In FY25, Infosys forecasts revenue growth in the range of 1-3 percent in constant currency terms and anticipates maintaining an operating margin between 20-22 percent. Despite expectations of a tepid fourth quarter from D-Stress analysts, due to a downturn in discretionary spending, the IT giant reports a robust deal pipeline. However, deal closures have been somewhat impeded by slower decision-making processes and the impact of furlough periods.