Vivo may also face I-T probe as SFIO flags profit diversion, findings to be shared with CBDT

Vivo could soon come under the Income Tax Department scanner after the Serious Fraud Investigation Office (SFIO) flagged alleged diversion of profits in its investigation report. The findings are expected to be shared with the Central Board of Direct Taxes (CBDT), potentially widening the regulatory net around the Chinese smartphone manufacturer, a government source said.

“There is clear evidence of diversion of profits in addition to fund diversion in Vivo’s case, which has tax implications. The findings will be handed over to CBDT, and an income-tax investigation may follow,” the source told Moneycontrol .

Once the SFIO report is passed on to CBDT, the I-T department may examine potential profit diversion and tax evasion. For Vivo, this could translate into proceedings under both cor