India’s Directorate of Revenue Intelligence (DRI) has accused Vivo Mobile of evading taxes worth ₹ 22.1 billion ($ 280 million). The DRI discovered customs duty evasion and issued a “show case” notice to the company, a legal request for the company to justify its actions.
Vivo Mobile is accused of “intentional misrepresentation in the description of some imported items”. Evidence of this was uncovered after the Enforcement Directorate (ED) raided 44 locations belonging to the company. Some assets were seized during the investigation.
According to data from the authorities, tax evasion allowed Vivo Mobile to transfer nearly $ 8 billion to its parent company in China over the course of 5 years, which corresponds to nearly half of Vivo Mobile’s revenue.
Vivo is not the only smartphone company under control: Finance Minister Nirmala Sitharaman confirmed that the authorities are also investigating Oppo and Xiaomi.
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