Tata Communications' Canadian subsidiary, Tata Communications (Canada) Ltd, and the Canada Revenue Agency have reached an agreement in principle to settle tax claims related to its international telecommunications services. According to reports from CNBC TV18, the agreement was reached on September 14, 2026, covering claims raised by the Canada Revenue Agency following audits of Tata Communications (Canada)'s international telecommunications services and support services for its signalling business. The company stated there is currently no material impact expected on its financials pursuant to the in-principle settlement agreement.
This latest agreement relates to a separate issue concerning international telecommunications services rendered by Tata Communications (Canada) Ltd, distinct from an earlier settlement disclosed on June 28, 2025. As reported by CNBC TV18, the previous agreement had covered claims related to the determination of taxable income from the signalling business. The terms of the current settlement are currently under finalisation, with Tata Communications stating it will make necessary disclosures and provide appropriate updates once the settlement documents are executed between the parties. The parties currently do not have a definitive timeline for completion of the settlement documents.
Separately, Tata Communications Ltd has issued and allotted Commercial Paper aggregating to ₹400 crore. According to CNBC TV18, the Commercial Paper was issued on September 11, 2026, and has a redemption date of October 22, 2026. The face value of each security is ₹5 lakh, with a discount rate of 5.99% per annum.
Shares of Tata Communications Ltd ended at ₹1,745.30, down by ₹17.95, or 1.02% on the BSE, as reported by CNBC TV18. The parties currently do not have a definitive timeline for completion of the settlement documents, with the settlement terms still under finalisation.
