Following the recent invasion of Xiaomi and Oppo offices by the Indian Income Tax Administration, a report has been released that suggests that a $ 134 million fine may be imposed on these companies. The possible fine will be imposed for tax evasion and violation of Indian law.
According to the Economic Times, India has found that the two Chinese tech giants have made financial transfers in the form of royalties to or through their group of companies, for a total of more than $ 738 million. However, they have not enforced the income tax law and may now face fines of up to $ 134 million.
Indian government investigation continues …
One of these companies increased its costs by making payments through its owner to reduce its taxable profit. In addition, the Indian Tax Authority is investigating allegations that the two companies owed $ 671 million in fictitious loans. One of these companies used the financial services of an Indian company but did not fulfill its tax obligations. These commitments have been announced at something around $ 40 million.
Documents obtained from Xiaomi and Oppo offices in at least 11 centers in India are still under investigation, so it is unclear what the future holds for the case and what other charges will be brought against the two companies.
But according to the announcement, Xiaomi and Oppo will have to wait for heavy fines and serious legal action. In addition, if the two companies want to continue operating in India (which they are likely to do), they will face much more rigor than in the past and will not have a chance to make mistakes.
