SOURCE / COMPANIES
Oppo said it will respond to tax evasion allegations from India
Published: Jul 15, 2022 12:47 AM
Chinese company OPPO presents its live 5G real-time multiplayer cloud gaming at Mobile World Congress (MWC 2019) in Barcelona, Spain, Feb. 25, 2019. The four-day MWC 2019 opened its door on Monday, which presents the newest 5G products of the high-tech giants from all around the world. (Xinhua/Guo Qiuda)
Chinese company OPPO presents its live 5G real-time multiplayer cloud gaming at Mobile World Congress (MWC 2019) in Barcelona, Spain, Feb. 25, 2019. The four-day MWC 2019 opened its door on Monday, which presents the newest 5G products of the high-tech giants from all around the world. (Xinhua/Guo Qiuda)

Chinese smartphone maker Oppo told the Global Times on Thursday that it was reviewing a response to a notice from India's Directorate of Revenue Intelligence (DRI) which alleges that the Chinese company has evaded customs duty worth 43.9 billion rupees ($551 million). 

"Oppo India is reviewing the notice from the DRI office and we are going to reply to it and present our side,” the Chinese smartphone maker told the Global Times in a statement on Thursday. 

Indian investigators said they found evidence that Oppo wrongfully used duty exemptions for items imported for use in mobile phone production, Reuters reported, citing an Indian government statement on Wednesday.

Indian investigators also allege that Oppo made royalty payments which were not added to the transaction value of imported goods, as required by Indian law, the report said.

Oppo said in the statement to the Global Times that, as a responsible corporation, it believes in prudent corporate governance framework.

“Oppo India will take appropriate steps as may be needed in this regard, including any remedies provided under the law,” the company said.

The action against Oppo is the latest amid India’s frequent investigations into Chinese firms.

India's Enforcement Directorate earlier reportedly seized 4.65 billion rupees ($59 million) of Vivo's assets. The move has caused Vivo to default on the payment of statutory duties and employee salaries, Reuters said, citing a filing to the Delhi High Court. 

Vivo on Tuesday told the Global Times that, as a responsible company, it strictly abides by all local laws and regulations in India. 

After seizing $726 million from Chinese tech firm Xiaomi Inc in April, India has started the process of inspecting the books of more than 500 Chinese companies, including ZTE Corp, Vivo, Xiaomi and Huawei Technologies, Bloomberg reported in May.

India's concentrated moves against Chinese companies have attracted attention from Chinese officials.

Foreign Ministry spokesperson Zhao Lijian said on July 6 that China firmly supports Chinese companies in safeguarding their lawful rights and interests. 

“We hope the Indian authorities will abide by laws as they carry out the investigation and enforcement activities and provide a truly fair, just and non-discriminatory business environment for Chinese companies investing and operating in India,” Zhao said.

The frequent investigations by Indian authorities into Chinese enterprises not only disrupt normal business activities and damage goodwill, but also impede the improvement of business environment in India and chill the confidence and willingness of market entities from other countries, including those from China, to invest in India, Wang Xiaojian, counsellor and spokesperson from Chinese Embassy in India, said earlier this month.