Indian agency accuses Chinese phone-maker Vivo of $280m tax evasion

A staff pose in front of a Vivo logo in Naypyitaw.

An Indian government agency has accused Chinese-owned Vivo Mobile of evading taxes worth Rs 22.1 billion ($280 million), it said in a statement.

The tax evasion allegation is India’s second this week against a Chinese phone-maker.

India’s Directorate of Revenue Intelligence (DRI) detected customs duty evasion, following which it has issued a show cause notice to Vivo India, the statement said.

A show cause notice is a formal demand for an accused party to justify themselves.

The DRI’s investigation led to the finding of “incriminating evidence indicating wilful mis-declaration in the description of certain items imported,” the statement said.

Vivo India did not immediately respond to a Reuters request for comment.

Last month, Reuters reported India’s financial crime-fighting agency, the Enforcement Directorate, raided Vivo.

On Tuesday, the DRI issued a show-cause notice to Oppo, another Chinese phone-maker, demanding duty of Rs 44 billion ($556.57 million).

Reuters

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter

You have 3 free stories remaining for the month. Register to continue reading our content