Vivo India remitted about 50% of its turnover to China to avoid taxes: ED

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Vivo India remitted about 50% of its turnover to China to avoid taxes: ED

 

1. The Enforcement Directive (ED) announced today that Chinese phone maker Vivo has remitted a whooping 50 % of its turnover from India operations, worth Rs 62,476 crore, to avoid payment of taxes in India.
2. These remittances were made in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India.
3. The ED also noted that 22 companies associated with Vivo were transferring a huge amount of funds to Vivo India. Eighteen of these companies were incorporated by a Chinese Director, who falsified identification and forged address at the time of incorporation of one of the companies, Grand Prospect International Communication (GPICPL).
4. The ED also said it has seized funds worth ₹465 crore kept in 119 bank accounts by various entities, ₹73 lakh cash and 2 kg gold bars after its pan-India raids.
5. The ED also alleged 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.
6. The agency had filed an Enforcement Case Information Report (ECIR), the ED equivalent of a police FIR, on February 3 after studying a Delhi Police FIR against GPICPL.
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