comscore Vivo remitted Rs 62,476 crore mostly to China to avoid paying taxes in India, claims ED
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Vivo remitted Rs 62,476 crore outside India to avoid paying taxes: ED

The ED statement claimed that an ex-director of Vivo, Bin Lou, left India in 2018 after incorporating a number of companies that are now under its scanner.

vivo

Vivo executives may have fled India amid ED's money laundering probe


The Enforcement Directorate (ED) raided around 44 facilities of Chinese smartphone brand Vivo in India last week. Now, the agency has issued a statement claiming that the Vivo remitted a whopping 50 percent of its turnover to China in order to avoid paying taxes in India. This amounts to a massive sum of Rs 62,476 crore. Also Read - Vivo India refutes ED’s claims of money laundering in India: Check details

The statement issued by ED said, “These companies are found to have transferred huge amount of funds to Vivo India. Further, out of the total sale proceeds of Rs. 1,25,185 crores, Vivo India remitted Rs. 62,476 crores. i.e, almost 50% of the turnover out of India, mainly to China. These remittances were made in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India.” Also Read - Vivo India challenged integrity, sovereignty of India: ED tells Delhi HC

The statement issued by ED claims that the federal agency has also seized funds worth Rs 465 crore kept in 119 bank accounts by various entities, Rs 73 lakh cash and 2 kg gold bars after its pan-India raids that were launched early this week on July 5 against Vivo Mobile India Pvt. Ltd. and its 23 associated companies. Also Read - First Xiaomi, then Vivo, now Oppo: Why are Chinese firms on Indian govt's radar?

The statement read, “So far, 119 bank accounts of various entities with gross balance to the tune of Rs 465 crores including FDs to the tune of 66 crores of Vivo India, 2kg gold bars, and cash amount to the tune of approximately Rs. 73 lakhs have been seized under the provisions of PMLA, 2002.”

The ED statement claimed that an ex-director of Vivo, Bin Lou, left India in 2018 after incorporating a number of companies that are now under its scanner.

The statement issued by ED alleged that 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.

The investigation is still ongoing, according to the federal agency. Read the complete statement here.

 

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  • Published Date: July 7, 2022 6:38 PM IST



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