After Xiaomi, another Chinese company, Sino-Kemmed Trading Co finds itself in the tax net. While Xiaomi problems are India centric, Sino-Kemmed, has been charged with tax evasion in Bangladesh.
A subsidiary of Global Pet Products Co Ltd, located in Shenzhen, Sino-Kemmed Trading company has despatched a consignment of coated calcium carbonate to one of its Dhaka-based associates namely ‘NB Trading House’. But on physical examination at Chittagong port, where the consignment arrived in five containers, the Bangladesh officials found 120 tonnes of high-value Dextrose Monohydrate in the packets, Bangladesh Live News reported. It resulted in a tax loss of Bangladeshi Taka (TK) 42 Lakhs 13 thousand.
This was not the first such case in Bangladesh though.
Last December, the authorities unearthed tax evasion by China Road Bridge Corporation (CRBC), while importing construction material for government projects.
Another Chinese company, ‘Digit Anti Fake Company Ltd’ (DAFC) is facing for evading over Tk 250 crore as tax. It stands accused of suppling counterfeit bandrolls which are thin ribbon used for wrapping bidi and cigarette packets. The company was also found involved in printing counterfeit passports, ballot papers, national identity cards, and birth registration certificates, says the Beijing News Net quoting local media reports.
In another case of evasion, Tianye Outdoor (BD) Co Ltd (TOCL), a subsidiary of Chinese company Comefly Outdoor Co Ltd defrauded the Bangladesh exchequer to the tune of about Tk 21 crore.
Reports say the port authorities/ customs were under tremendous pressure not to disclose the name and identities of Chinese companies involved in tax fraud. Apparently, Beijing does not want a bad image in the local media in these days when China is accused of debt trapping developing countries.
Reports say that the Bangladesh government has cancelled Chinese funding for one of its railway projects and is reportedly looking for alternative funding. The projects to be executed include Joydebpur-Ishwardi double gauge project and conversion of Akhaura-Sylhet meter gauge into a dual gauge.
Neighbouring India, has banned more than 300 Chinese apps and tightened standards for Chinese companies investing in the country after Láffaire Xiaomi. (SAT)