Indian tax authorities raid Chinese language smartphone maker VIVO • The Register

India’s Division of Income has acted in opposition to scams it alleges originate in China.

The Division’s Directorate of Enforcement on Wednesday raided 48 premises belonging to Vivo Mobiles, the Indian outpost of the smartphone vendor that, in line with Counterpoint Analysis, holds 15 p.c of India’s smartphone market.

The explanation for the raids was the Division’s perception that Vivo shifted about $8 million to China, “so as to disclose big losses in Indian integrated firms to keep away from cost of taxes in India.”

The Division has additionally seized 119 financial institution accounts, loads of money, and two kilograms of gold bars.

China’s international ministry acknowledged the raids and known as for Indian authorities to “present a very truthful, simply and non-discriminatory enterprise atmosphere for Chinese language firms investing and working in India.”

The raids comply with the Could 2022 seizure of $725 million from Chinese language gadget-maker Xiaomi’s Indian presence, on grounds it too had improperly funneled money to China.

In June 2022 the Division additionally revealed it was probing Vivo and Chinese language telco tools maker ZTE.

Investigations into each are persevering with, as are probes right into a clutch of economic companies apps that supplied predatory loans utilizing funds the Division alleges got here from sources in China.

New Delhi alleges that the apps supplied brief time period loans, typically on punishing phrases, and that Chinese language lenders profited from their actions to the tune of $120 million.

The Division has seized thousands and thousands it believes had been destined for China, and revoked licenses for among the firms that revealed the lending apps.

The 2 actions mark a brand new skirmish within the testy relationship between China and India, which has soured since India banned a whole bunch of Chinese language apps. It justified the bans as defending residents’ privateness.

The 2 nations have additionally skirmished, actually, on their shared however ill-defined Himalayan borders. The 2 nations’ international ministers met this week and agreed to settle issues on the border. Cell phone makers with gold bars within the workplace could be trickier to determine. ®

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