India’s Directorate of Revenue Intelligence (DRI) accused Vivo Mobile of ₹22.1 billion ($280 million) in tax evasion. The DRI uncovered the duty evasion and issued the company a “show cause” notice – a legal request for the company to justify its actions.
Vivo Mobile is accused of “deliberate misrepresentation in the description of certain imported items”. Evidence of this was discovered after the Enforcement Directorate (ED) raided 44 locations belonging to the company. Some property was confiscated during the investigation.
According to authorities, tax evasion allowed Vivo Mobile to transfer nearly $8 billion to its parent company in China over 5 years, accounting for nearly half of Vivo Mobile’s revenue.
Vivo isn’t the only smartphone company under scrutiny – Finance Minister Nirmala Sitharaman confirmed authorities are also Oppo is investigating and Xiaomi.