Indian tax authorities raid Lenovo offices and factories in India
According to local Indian media sources, the Indian Income Tax Department, often abbreviated as the IT Department, launched an unanticipated raid this week on the facilities and offices of computer manufacturer Lenovo located in the union territory of Puducherry and one of its offices in Bengaluru city to gather evidence.
The Income Tax Department is a formal governmental agency of India, primarily tasked with overseeing the collection of income tax by the Indian government. Yet, its jurisdiction extends beyond merely income tax; it also oversees other levies such as wealth tax, gift tax, expenditure tax, and interest tax.
The tax division’s sudden raid on Lenovo’s Indian establishments has been prompted by suspicions of tax evasion on Lenovo’s part in India.
The raid, touted as part of a tax investigation, was initiated due to the department’s suspicion that Lenovo might be indulging in tax evasion within Indian borders. Consequently, a comprehensive search was conducted to collate evidence. During this probe, the department scrutinized the laptops of Lenovo employees and made attempts to communicate with Lenovo’s senior management both before and after the raid.
Lenovo’s official representatives have acknowledged this investigation, stating their intent to cooperate fully with the authorities and provide any requisite support. They asserted, “We adhere strictly to all applicable laws, regulations, and reporting requirements in every jurisdiction in which we do business.”
Open market data reveals that for the fiscal year 2022-2023, Lenovo generated a revenue of $1.9 billion in the Indian market, capturing 17% of India’s PC market share.
It is noteworthy to mention that India’s IT Department also made an unannounced visit to the facilities of Apple supplier, Flex, situated in Tamil Nadu. However, the purpose behind the IT Department’s visit to Flex remains undisclosed to the company.
Via: Reuters
