Vivo Scam: Loss shown instead of paying tax in India, thousands of crores sent to China
Chinese smartphone company Vivo is allegedly accused of money laundering. Vivo was sending money directly to China instead of paying taxes in India. Vivo’s India unit is accused of sending Rs 62,476 crore to China. This is about 50% turnover of the company. The Enforcement Directorate (ED) had recently arrested Vivo Mobile India Pvt. Ltd. And raided 23 locations related to the company. Indian investigative agencies had also seized about Rs 465 crore during this raid.
Vivo India did not pay tax
According to the news of NDTV, ED has issued a statement saying that Vivo India did not pay tax in India citing huge loss in business but the company has sent a large amount to China. This means that Vivo found a way to evade tax, which cannot be considered legal in any way. Investigative agencies have blocked 119 bank accounts linked to Vivo India, in which Rs 465 crore, Rs 73 lakh in cash, and 2 kg of gold are deposited. ED is probing the money laundering case.
not cooperating in investigation
The ED says that they have evidence that Vivo officials have committed several wrongdoings. Vivo has also alleged that Vivo India employees and some Chinese nationals are not cooperating in their investigation. Along with this, there was an attempt by the employees of Vivo India to hide many digital devices during the investigation.
Vivo says that it is cooperating fully with the investigating officers in accordance with Indian law. Vivo is a big player in the Indian smartphone market. According to a Counterpoint Research report, Vivo has a 15% share in the Indian smartphone market.
Action has been taken on Xiaomi too
This action on Vivo is being seen by the central government as tightening the noose on Chinese companies, which have been accused of money laundering and tax evasion. Earlier in April, the ED had seized Rs 5,551 crore on Xiaomi India for violating foreign exchange norms.