An Indian government agency has accused Chinese-owned Vivo Mobile of evading taxes worth 22.1 billion Indian rupees ($280 million), it said in a statement, reports Reuters. The tax evasion allegation is India’s second this week against a Chinese phone-maker.
India’s Directorate of Revenue Intelligence (DRI) detected customs duty evasion, following which it has issued a show cause notice to Vivo India, the statement said. A show cause notice is a formal demand for an accused party to justify themselves.
The DRI’s investigation led to the finding of “incriminating evidence indicating wilful mis-declaration in the description of certain items imported,” the statement said.