Chinese smartphone maker Huawei comes under the IT department’s scanner over tax evasion
Huaweihas come under the scanner of Indian agencies over tax evasion.
- The Income Tax department has accused Huawei of repatriating large amounts of money to its parent company in China.
- The department has claimed that Huawei sent the money in the form of dividends to reduce its taxable income.
AdvertisementChinese smartphone maker Huawei is the latest company to come under the scanner of Indian agencies. The Income Tax (IT) department has accused Huawei India of repatriating large amounts of money to its parent company in China.
According to an Economic Times report, Huawei has been accused of repatriating large amounts of money in the form of dividends to reduce its taxable income in India.
Huawei sent ₹750 crore as dividends despite dwindling revenues
Huawei has been under the IT department’s scanner for quite some time now. In February, the department had frozen the bank accounts of the company after it found evidence of tax evasion during a search operation.
Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More
The Delhi High Court had summoned the chief executive officer and three executives of Huawei after a complaint was filed by the IT department claiming the company was withholding information.
“The non-compliance by the accused company and its officers had resulted in obstruction and stifling of search action of authorized officers,” the court had said in its order.
Huawei in its petition to the court had claimed that the freeze on its accounts without any notice had affected its business.
In its response to Huawei’s claims, the IT department claimed that it had "incriminating material" against Huawei and added that the company’s petition is "a ploy raised on frivolous grounds just to obstruct departmental proceedings and to avoid consequential payment of taxes".
Not the first Chinese company to come under the scanner
Huawei is not the first Chinese smartphone maker to come under the scanner of Indian agencies. Earlier this year, the Enforcement Directorate (ED) had claimed that Xiaomi had illegally remitted ₹5,551.27 crore.
AdvertisementThe ED is investigating violations of the Prevention of Money Laundering Act (PMLA) act by the Chinese smartphone maker.
Vivo reportedly transferred nearly $8 billion to its parent company in China
EXCLUSIVE: 84% of the ₹5,551.27 crore of the alleged illegal remittance by Xiaomi India were to the Qualcomm Group
After Xiaomi, Vivo comes under the Enforcement Directorate’s scanner
Popular on BI
- Air India passengers stranded in Siberia for 2 days were abandoned by the crew, had to sleep on the floor, and were only given bread and rice, relative says
- Foreign investors have been dumping vast amounts of Chinese assets, and putting money there will only get riskier
- As a mom, I know punishments don't work. Parents should be trying to find a connection instead.
- List of famous things to buy in Munnar
- Ads that sailed into the eye of a controversy
- India tops world ranking in digital payments, records 89.5 million transactions in 2022: MyGovIndia
- Will regulate AI and ensure it doesn't harm digital citizens: Rajeev Chandrasekhar
- Road accident death rate has dropped in Kerala after AI cameras became operational: Transport Minister