India accusing China’s Huawei of tax evasion, government source says

The ministry of finance says a major telecoms group did not account for US$52 million in its books

The allegations follow raids last month at Huawei’s office premises in New Delhi, neighbouring Gurugram and tech hub Bangalore

Reading Time:1 minute

The Huawei Research and Development Centre is seen after the inauguration ceremony in Bangalore in February 2015. Photo: AFP

Published: 5:59am, 4 Mar 2022

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

Without naming the company, India’s Ministry of Finance said a major telecoms group did not account for income of 4 billion rupees (US$52 million) in its books, and showed expenses of 4.8 billion rupees that the firm failed to justify.

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

The government allegations follow raids by its income tax authorities last month at Huawei’s office premises in New Delhi, neighbouring Gurugram and tech hub Bangalore. The residences of senior executives were raided too.

The finance ministry said more investigations were in process.

The move comes amid escalating tensions between India and China following a border clash in 2020 between the neighbouring nations.

In February, India blocked access to 54 mobile apps mostly of Chinese origin, citing security concerns.