Just a couple of days ago, we had reported on Vivo being charged with money laundering by the ED (Enforcement Directorate). Now, a new report has revealed some more interesting details regarding this case.
According to an NDTV report, the ED has found that Vivo India has been sending a notable sum of its income from India back to China. Apparently, the Chinese smartphone maker is making this move to help avoid paying taxes in India. The Indian unit of the brand has reportedly sent around 62,476 crores INR (roughly 7.87 billion US Dollars), which is around 50 percent of its total turnover in the region back to its home country.
For those unaware, in our last report we covered how the ED conducted raids across India in locations related to the brand and had seized a total of 465 crores INR (roughly 58 million US Dollars). The ED stated that “These remittances were made in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India.” In other words, Vivo has found a way around the tax system, which could possibly not be wholly legal.
Notably, the ED has also blocked 119 bank accounts that were linked to Vivo’s Indian operations. It had even found forged documents while incorporating several companies. The addresses mentioned in these documents were also found to be false. The ED further added that the “employees of Vivo India, including some Chinese nationals, did not cooperate with the search proceedings and tried to abscond, remove and hide digital devices which were retrieved by the search teams.”
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