Suspected of tax evasion of $3 billion, Chinese mobile phone manufacturer Transsion was investigated by the Kenya Tax Authority

Mobile China

2024-05-27 10:26Published in Beijing

In the case of completely not relying on the Chinese mobile phone market, the Chinese mobile phone manufacturer Transsion has become the world's fifth largest smartphone manufacturer, with sales volume second only to a few companies such as Samsung, Apple and Xiaomi, and even higher than many domestic manufacturers we are familiar with. However, recently, CNMO noticed that according to overseas media reports, Transsion Holdings was investigated in Kenya for tax evasion of more than 3.02 billion US dollars.

According to authoritative media reports, the Kenya Revenue Authority (KRA) has launched a comprehensive investigation into Transsion Holdings, and the amount of suspected tax evasion is as high as 400 billion Kenyan shillings (about 3.02 billion US dollars).

As a significant player in the Kenyan market, Transsion Holdings' Tecno brand has a significant market share in the country. However, the company has recently been exposed to serious tax problems, which has aroused widespread concern and questions.

According to KRA Commissioner Humphrey Watanga, the KRA has set up a dedicated investigation team, composed of experienced tax experts, to fully investigate the tax evasion allegations related to Transsion Holdings. The investigation team will dig deep into Transsion Holdings' financial records for the past five years to find out whether there has been tax evasion.

It is reported that the investigation team has conducted a surprise inspection of Transsion Holdings' headquarters in Nairobi and found some evidence of suspected tax evasion. One of the allegations is that the company processes huge cash transactions every day but does not make wire or paper money transfers in accordance with the relevant regulations, raising serious questions from the tax authorities about the company's compliance with tax regulations.

In addition to the tax evasion allegations, Transsion Holdings has also been exposed to other irregularities in Kenya, including smuggling of undocumented Chinese workers and labor abuse. The allegations have further heightened public opinion pressure on the company and raised widespread concerns in Kenyan society about the company's business ethics and compliance.

Regarding the investigation, the Kenya Revenue Authority said it would take all necessary measures to ensure the impartiality and accuracy of the findings. At the same time, the company is under intense pressure from the government and the public to immediately address existing tax issues and other irregularities.

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