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Chinese manufacturers accused of tax evasion in India



A number of Chinese smartphone manufacturers have been accused of tax evasion by Indian authorities since the spring. It all started when Huawei's Indian office was raided by authorities in February.
In May, the equivalent of $725 million was seized from Xiaomi's bank accounts, as the manufacturer was accused of diverting high royalty fees to other parties. Xiaomi India said everything went right.

Now at the beginning of July, the equivalent of 58 million dollars of Vivo's assets in India were seized while 119 bank accounts were taken over, after the company was accused of money laundering. Indian authorities alleged that Vivo sent nearly eight billion dollars to China via shell companies, with the aim of being able to declare a loss in India and avoid paying taxes.

Vivos commented that they hope the investigations are conducted "in a truly fair and non-discriminatory business environment". The latest Chinese manufacturer to find itself in Indian trouble is Oppo, which in the middle of the month was accused of evading customs duties. Indian authorities want $551 million from Oppo.

All this has prompted Chinese manufacturer Honor to withdraw its staff from India. Local partners will instead represent Honor in the Indian market. The Honor boss says that the manufacturer should have a "very safe approach" in India. Unlike Xiaomi, Vivo and Oppo, however, Honor has so far not been the subject of any formal Indian investigations.


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