Nokia now facing $1.1B tax bill in India – report

first_img Author WhatsApp sues India over new internet regulations Nokia scores Philippines 5G deal with Dito Ken has been part of the MWC Mobile World Daily editorial team for the last three years, and is now contributing regularly to Mobile World Live. He has been a telecoms journalist for over 15 years, which includes eight…More Read more AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore 11 DEC 2013 Ken Wieland Previous ArticleBharti Airtel, Reliance Jio strike network sharing dealNext ArticleFCC in-flight call plan meets political and public opposition Home Nokia now facing $1.1B tax bill in India – report Tags Nokia makes AI move with Microsoft India’s authorities are threatening Nokia with a tax bill of around $1.1 billion – three times as much as the Finnish supplier was previously willing to pay to settle a dispute – according to a Financial Times (FT) report.  Nokia’s Chennai factory, one of the company’s biggest phone-making plants, was seized by the country’s authorities in September – around the same time as news broke that the Finnish company agreed the sale of its Devices & Services unit to Microsoft.The drastic action was taken against the backdrop of an investigation by India’s revenue department into a INR23 billion ($375 million) claim related to payments made by Nokia’s Indian subsidiary to its parent company in Finland.Nokia is reported to have offered at least €355 million to India’s tax authorities to settle the dispute, enabling the asset transfer to Microsoft.However, “two people familiar with the situation”, according to the FT, confirmed that India’s revenue department now expects to raise a further tax claim of INR45 billion.The sum relates to alleged non-payment of similar taxes on international transfers to its parent (which stretch over a longer period of time than when the INR23 billion fee was calculated).An Indian court will announce on 12 December its verdict on Nokia’s appeal against the seizure of the Chennai factory, according to Reuters. Related FinancialIndiaMicrosoftNokiaRegulatorylast_img

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