The Indian Ministry of Finance said Xiaomi evaded 558 million yuan in taxes. Xiaomi responded

The Indian Ministry of Finance issued a statement to the Indian Government Information Bureau (PIB) on the afternoon of January 5th local time, stating that Xiaomi Technology India Co., Ltd. evaded customs duties of 6.53 billion rupees (about 558 million yuan).

It is understood that the investigation results of the Indian Revenue Intelligence Department (DRI) showed that Xiaomi India and its contract manufacturers did not include the amount of royalties paid by Xiaomi India in the valuation of the goods, violating Section 14 of the Indian Customs Act 1962 and the Customs Valuation (Determination of the Value of Imported Goods) Rules 2007. According to the regulations, DRI has issued a notice to Xiaomi India to recover the tax.

This evening, according to the "Science and Technology Innovation Board Daily", Xiaomi Group responded to this matter, stating that Xiaomi insists on legal and compliant operations worldwide and abides by relevant laws and regulations in the place of operation. The relevant Indian authorities asked Xiaomi to pay the import taxes 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; the root cause of this tax issue is that the parties have differences in 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 all countries; Xiaomi will also continue to communicate with relevant Indian authorities on this issue.