Tata Communications announced an in-principle agreement for its Canadian subsidiary, TC Canada, to settle tax claims raised by the Canada Revenue Agency (CRA). The settlement pertains to taxes on income from TC Canada’s international telecommunications services business. While no material financial impact is currently expected, the terms of the settlement are still under finalization.
Subsidiary Reaches In-Principle Tax Settlement
Tata Communications Limited has provided an update regarding the material litigation involving its subsidiary, Tata Communications (Canada) Ltd. (‘TC Canada’). The company informed that TC Canada and the Canada Revenue Agency (‘CRA’) have reached an agreement in principle to settle the issue pertaining to claims for taxes on income related to TC Canada’s international telecommunications services business.
Details of the Settlement
This latest development follows a previous update on June 28, 2025, where the Company had intimated an in-principle agreement for settling claims related to the Signaling business of TC Canada. The current agreement, reached on September 14, 2026, specifically addresses the international telecommunications services business. The terms of this settlement are currently being finalized, and further disclosures will be made upon the execution of the relevant settlement documents.
Financial Impact
The company stated that there is no material impact currently expected on the financials of Tata Communications pursuant to this in-principle agreement for settlement. The parties do not have a definitive timeline for the completion of the settlement documents at this juncture.
Source: BSE
