Exclusive: India freezes bank accounts of China's ByteDance in tax case, company mounts challenge - sources

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Indian authorities have blocked bank accounts of ByteDance in the country for alleged tax evasion and the company has asked a court to quash the directive which it fears will hit its operations hard, two sources with direct knowledge told Reuters.

FILE PHOTO: Small toy figures are seen in front of TikTok logo in this illustration picture taken March 15, 2021. REUTERS/Dado Ruvic/File Photo

In mid-March, two of ByteDance India’s bank accounts in Citibank and HSBC were ordered blocked by authorities for alleged evasion of certain taxes in online advertising dealings between the ByteDance unit in India and its parent entity in Singapore, TikTok Pte Ltd, the two sources said. Both the sources declined to be identified as the details of the bank freeze or company’s court challenge were not public.

The directive to freeze ByteDance India’s bank accounts came after tax authorities last year inspected documents at the company’s office, scrutinized documents and questioned some executives in relation to the advertising and other transactions with its parent entity, the first source said.

 

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