The Enforcement Directorate on Thursday said that the Indian arm of Vivo remitted around 50 percent of its total turnover, Rs 62,476 crore, to China to avoid taxes. ED has blocked 119 bank accounts holding Rs. 465 crores linked to Vivo India.
As a part of the investigation, ED had carried out searches at 48 locations of Vivo India and 23 associated companies across the country.
Vivo is owned by the Chinese company BBK Electronics. The investigation revealed that Vivo India had a turnover of almost 1.25 lakh crore from 2017 to 2021. But the company transferred roughly half of its revenue to its parent company in China to disclose huge losses and avoid taxes.
The investigation also found that a limited number of Chinese shareholders also falsified their identification papers to circumvent Indian laws and regulations.
Vivo is one of the biggest smartphone brands in India and accounts for a 15% smartphone market share. This news will surely hurt its business in India. Other Chinese smartphone companies are also under the radar of ED and the IT department. Xiaomi also got their assets worth more than Rs. 5,500 Crores frozen in the past. Government officers conducted searches at OnePlus and Oppo offices in the past.
