Technology

TikTok Parent ByteDance Says It Is ‘Bleeding’ Due to Bank Account Freeze

01/04/20210

An Indian court docket on Wednesday granted no reduction to China’s ByteDance, proprietor of the TikTok video app, in a case the place the corporate challenged the native tax authority’s resolution to block its Indian financial institution accounts, dealing a blow to its operations.

Indian authorities in mid-March blocked ByteDance’s financial institution accounts for alleged tax evasion, prompting the corporate to ask a court docket to quash the directive which it feared would damage its operations.

A two-judge bench on the High Court in Mumbai metropolis heard the plea of a ByteDance counsel who mentioned the corporate was “bleeding” and wanted funds to pay workers salaries and lease, however the court docket gave no reduction.

“I’m completely hanged. I need some oxygen to survive. All bank accounts are frozen. I have to pay salary to the staff,” ByteDance’s counsel Prakash Shah informed the court docket, including that 4 of the corporate’s financial institution accounts had been blocked.

After listening to objections from a authorities counsel, the court docket mentioned the case will subsequent be heard on April 6.

ByteDance, which has mentioned it disagrees with the Indian tax authority’s resolution, mentioned in an announcement late on Wednesday it was assured in its authorized place and was trying ahead to a ruling by the court docket.

ByteDance in January cut its Indian workforce after New Delhi retained a ban on its standard video app TikTok, first prohibited final 12 months following a border conflict between India and China. China has repeatedly criticised India’s transfer.

ByteDance nonetheless has round 1,300 workers in India, most of whom service its abroad operations, together with work on actions reminiscent of content material moderation.

Authorities ordered ByteDance India’s accounts at Citibank and HSBC to be blocked this month due to alleged evasion of sure taxes in internet marketing dealings between the ByteDance unit in India and its mum or dad entity in Singapore, TikTok Pte Ltd, Reuters reported.

Last 12 months, Indian tax authorities inspected paperwork at ByteDance’s workplace and questioned some executives in relation to the promoting and different transactions with its mum or dad entity.

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