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  • Kyle Chua

After Xiaomi & Vivo, India Now Accuses Oppo of Tax Evasion

Oppo is now the latest Chinese smartphone maker to find itself in trouble with Indian authorities.

Credit: Oppo

The local unit of Oppo in India is reportedly being investigated by the country's Directorate of Revenue Intelligence for allegedly evading customs duty amounting to 43.9 billion rupees, which equates to about US$551 million.


According to Reuters, investigators found evidence that the company wrongfully used duty exemptions for imported mobile phone components used in production. Oppo was also accused of making royalty payments which were not added to the transaction value of imported goods, as required by Indian law.


The Revenue Intelligence office is now demanding Oppo India pay the customs duties it supposedly owes. Oppo India, along with its employees and Oppo China, could also face penalties, though authorities have yet to share details.


"We have a different view on the charges," an Oppo spokesperson said in a statement. "We believe it's an industry-wide issue many corporates are working on."


The spokesperson noted that the company will reply to the notice, present its side and cooperate with authorities on the investigation.


Oppo joins Vivo and Xiaomi in what is seemingly becoming a growing group of Chinese smartphone makers that are being targeted by the Indian government.


The Indian anti-money-laundering agency almost exactly a week ago accused Vivo of tax fraud, seizing a total of 4.65 billion rupees, which is around US$59 million, from the company in 48 separate raids. The same agency seized US$725 million from Xiaomi a few months ago after it accused the electronics giant of violating foreign exchange laws. Both companies have denied any wrongdoing.


Wang Xiaojian, the spokesperson of the Chinese Embassy in India said last week that China is keeping a close eye on the investigations.


Reuters notes that many Chinese companies with businesses in India are struggling because of the tensions between the two neighbouring superpowers, which escalated after a border clash in 2020. Chinese smartphone makers, however, want to remain optimistic, despite these circumstances, due to the favourable market opportunities that India presents.

 
  • Oppo India is reportedly being investigated by the country's Directorate of Revenue Intelligence for allegedly evading customs duty amounting to 43.9 billion rupees.

  • The company was also accused of making royalty payments which were not added to the transaction value of imported goods, as required by Indian law.

  • Authorities are now demanding Oppo India pay the customs duties it supposedly owes.

  • Oppo joins Vivo and Xiaomi in what is seemingly becoming a growing group of Chinese smartphone makers that are being targeted by the Indian government.

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