India Accused Vivo of $280 Million Tax Evasion

The Indian Directorate of Revenue Intelligence (DRI) accused Chinese-owned Vivo Mobile of evading taxes worth $280 million.

According to the Indian Finance ministry, DRI issued a show cause notice to Vivo India, a formal demand for an accused party, to justify themselves after it detected customs duty evasion.  

Reports said the DRI’s investigation found “incriminating evidence indicating willful misdeclaration in the description of certain items imported.”  

Last month, the Enforcement Directorate reportedly raided Vivo, and the government froze all its bank accounts.

Vivo appealed they needed the funds for monthly payables, including employee salaries, office rents, bank financing payments, and other expenditures. 

Meanwhile, the ministry said the DRI was investigating cases of tax evasion of two other Chinese mobile companies – Oppo Mobiles India Ltd. and Xiaomi Technology India.  

On Tuesday, the DRI issued a show-cause notice to Oppo, demanding a duty of $556.57 million. 

In February, Indian tax officials froze $478 million worth of deposits in local bank accounts of China’s Xiaomi Corp as part of an investigation into alleged tax evasion. 

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