China’s ecommerce giant loses 1.2 billion yuan in tax dispute

China’s biggest ecommerce firm, JD.com, said Friday that it lost 1.1 billion yuan after the U.S. government accused it of avoiding sales taxes.

The tax dispute over the firm’s overseas operations came amid growing pressure on China over the use of its state-owned banking and commerce agency to boost online sales and to allow foreign companies to operate freely in the country.

The dispute came as Chinese regulators tightened rules on the nation’s online industry, including a ban on the sale of goods in China and a ban in January on the buying and selling of goods overseas.

JD.net was founded in 2009 and has more than a million Chinese users, according to Bloomberg data.

The company said in a statement that it would work to resolve the tax dispute.

The U.N. International Trade Commission, a U.K.-based trade body, filed a complaint against JD.

Net in January alleging that it “failed to pay its U. S. income tax for the year ended December 31, 2017.”

The complaint alleges that JD.

Net failed to pay the U,S.

corporate income tax owed on $1.2 million in income it declared to the IRS.

JD said it would continue to comply with the tax law, but that it will continue to hold back sales tax from customers outside the U .

S. to “help our business in China.”

In a statement, JD said that the U!

S.

complaint “trampled on the tax-dodging activities of the company, the legitimate business interests of our U. N. customers, and the value of our business and our customers’ confidence in our operations.”

In January, the U.,S.

Treasury Department accused JD of using a tax-deductible financing facility to pay overseas tax bills, a charge that JD denied.

In a separate filing Friday, the Treasury Department also accused JD and its U!s subsidiary of withholding payments from U.$.

customers in violation of the tax treaty between the U and China.

The Treasury Department said it is asking JD and U!

to provide more details on the matter.

In addition to the tax controversy, China has been under intense scrutiny for the role of its ecommerce giants in the global spread of online piracy.

JD’s loss, which was not disclosed, comes as the U?s Commerce Department and the Justice Department announced they had filed lawsuits against JD and other U?n.

ecommerce companies alleging that they failed to report sales of counterfeit goods that the companies shipped to customers outside of the U.?s borders.

The companies also said that they have reached a settlement with the U to settle the dispute.

In March, China said it will take legal action against the companies.

China’s state-run newspaper, the Global Times, said in an editorial that “J.D.com and other ecommerce firms are responsible for the spread of pirated products, and must pay the full tax rate.”