Paying taxes on time and according to the amount is a basic obligation for a company, but because of the differences in laws and regulations in various countries, we often see news reports that some companies are being pursued by government departments of various countries.
Recently, the Ministry of Finance of India issued a notice saying that after the investigation found tax evasion, Xiaomi India was required to pay taxes of 6.53 billion rupees (about 560 million yuan) to the Indian Ministry of Finance.
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In response, Xiaomi responded that Xiaomi adheres to legal and compliant operations around the world and abides by the relevant laws and regulations of the place where it operates. This time, the Ministry of Finance of India asked Xiaomi to pay the import tax related to royalties between April 1, 2017, and June 30, 2020, which has nothing to do with Xiaomi’s recent business, and the official statement is not the final result.
At the same time, Xiaomi officials also stated that the root cause of the tax issue this time is the disagreement between the parties on the price determination of imported goods. Whether royalties, including patent licensing fees, should be included in the price of imported goods is a complex technical problem in every country. Xiaomi said that it will continue to communicate with relevant Indian authorities.
A spokesperson for Xiaomi India said that Xiaomi India takes it very seriously to ensure that the company complies with all Indian laws and the company is currently reviewing the notice in detail. As a responsible company, Xiaomi India will provide all necessary documents to support the authorities.
(via)
