A tax investigation into China’s Huawei has found the telecom equipment maker manipulated its accounts, government sources said.
A tax investigation into China’s Huawei Technologies has found the telecom equipment maker manipulated its books of accounts to reduce taxable income in the country, Reuters quoted a government source as saying. on Thursday.
Without naming the company, the Finance Ministry said a major telecom group did not include 4 billion rupees ($52 million) in income in its books, and set out expenses of 4.8 billion rupees that the company unjustifiable.
A spokesperson for Huawei in India did not immediately respond to a request for comment.
The government’s allegations follow raids by its income tax authorities last month at Huawei’s office headquarters in New Delhi, neighboring Gurugram and technology hub Bengaluru. The residences of senior executives were also raided.
The finance ministry said more investigations were underway.
In February, India blocked access to 54 mobile apps mainly originating from China, citing security concerns.
Globally, Huawei is at the center of a US campaign, which has asked allies to remove the company from their 5G networks over spying concerns. The company has denied it is a security risk.
In India, the government omitted Huawei when designating foreign network equipment suppliers to be allowed to conduct 5G trials in one of the world’s largest markets in terms of mobile phone users.
Huawei is also baffled by trade restrictions imposed by the US administration on the sale of chips and other components used in its smartphone and networking equipment business.
(1 dollar = 75.8825 Indian rupees)
