The Government of Canada has fined global IT services provider Infosys CAD 1,34,822.38 (JPY 82 million) for underpaying employee health taxes for the fiscal year ending December 31, 2020. I was punished.
Infosys said in a regulatory filing that it received the order from the Canadian Treasury on May 9. According to the filing, “penalties will be imposed for the alleged underpayment of employee health tax for the year ended December 31, 2020.”
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Infosys said the fine will not have a material impact on its financial health, operations or other activities. The company reassured stakeholders that the financial impact is manageable within the existing financial framework.
Infosys stock was trading in the red at Rs 1,423.50, down 0.09%, as of 1:34 pm on May 15 after the BSE announcement. According to BSE, the company's market capitalization stands at Rs 5,99,770 crore.
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Infosys announced its fourth quarter results on April 18, posting a net profit of Rs 7,975 crore and total revenue of Rs 37,923 crore for the March quarter. The company said year-over-year sales were unchanged on a constant currency basis, and quarter-over-quarter sales were down 2.2%.
Infosys expects FY25 revenue growth to be in the range of 1% to 3%, excluding currency effects, and operating margins to remain in the range of 20% to 22%. The tech giant reported a strong deal pipeline, even though D-Street analysts expected a weak fourth quarter due to lower discretionary spending. However, delays in the decision-making process and the impact of furlough periods have somewhat hindered deal completion.
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