The legal problems of some Chinese companies were started by the Xiaomi company several weeks ago. At that time, the Indian government took over Xiaomi's assets worth around 725 million of dollars after proving that the company made transfers that were illegal under Indian law. This time, the next problems related to operations in India concern Vivo.
Vivo's Indian branch called Vivo India has been accused of deliberately avoiding income tax in India. According to public reports, the company was registered as a subsidiary of an intermediate Hong Kong-registered firm and through it passed funds that later went to China to avoid taxation in India. For this reason, as many as 119 Vivo India bank accounts were blocked in India. Overall, for all financial assets, including cash, Vivo was confiscated approximately 58 million of dollars and 2 kg of gold bars. However, Vivo India emphasizes that it is constantly cooperating with the Government of India and will try to prove that it fully complies with Indian law in the course of the ongoing investigation.