India has accused Huawei of tax evasion: Report

An Indian tax investigation on China’s Huawei Technologies has found that the telecoms equipment maker manipulated account books to reduce its taxable income in the country, an Indian government source told Reuters on Thursday.

Without naming the company, Ministry of Finance said that a major telecoms group “failed to provide any substantial and appropriate justification” on tax claims during income tax raids on its offices in three Indian cities last month.

A Huawei spokesperson in India did not immediately respond to a request for comment.

The searches, carried out by I-T Department on February 15, which were spread across Delhi, Gurugram and Bengaluru covered the main business premises and also the residential premises of the key office bearers, said Ministry of Finance in a statement on Thursday.

“Evidences gathered and statements recorded during the search also reveal that one of the group entities engaged in providing software development services, has been disclosing lower net margins from the related parties, by claiming its operation to be of low-end nature. However, the evidences collected during the investigation indicated that this entity has been rendering significant services/ operations of high-end nature. On this aspect, suppression of income of Rs 400 crore has been detected,” said the ministry.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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