PwC says India arm questioned in Nokia tax probe

NEW YORK Fri Jan 18, 2013 12:45am IST

Illustration picture shows Nokia logo on used cell phones, in Zurich, April 30, 2012. REUTERS/Christian Hartmann/Files

Illustration picture shows Nokia logo on used cell phones, in Zurich, April 30, 2012.

Credit: Reuters/Christian Hartmann/Files

Related Topics

Stocks

   

NEW YORK (Reuters) - The Indian affiliate of global accounting firm PricewaterhouseCoopersPWC.UL was questioned on Thursday by tax authorities looking into possible tax evasion by Finnish phone maker Nokia(NOK1V.HE), a spokesman for PwC confirmed.

Tax officials last week raided Nokia's production unit in Chennai, one of the company's biggest facilities.

A senior Indian tax official said the investigation related to allegations that Nokia may have evaded around 30 billion rupees in taxes. Nokia has said it was cooperating with the probe.

PwC's arm in India both audits and provides tax advice to Nokia, said Mike Davies, a spokesman for PricewaterhouseCoopers International Ltd. Auditor independence standards in India allow firms to both audit and provide tax advice to the same client, he added.

PwC's Indian affiliate has said they are fully cooperating with tax authorities on the matter.

Newspapers in India reported last week that PwC would be called in for questioning on the Nokia tax case.

British telecommunications carrier Vodafone Group Plc (VOD.L) is also being pressed for payment of $2 billion in disputed taxes in India on its 2007 acquisition of mobile telecom assets.

Tax disputes are becoming more common as governments around the world faced with large deficits crack down on tax avoidance in search of new revenues.

(Reporting by Dena Aubin, additional reporting by Ritsuko Ando in Helsinki, editing by G Crosse)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Markets

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Power Outage

Power Outage

Mumbai hit by power cuts  Full Article 

Commodities

Commodities

Gold imports, premiums to jump on festive demand - top refiner  Full Article 

Economic Worries

Economic Worries

Pakistan's promises to IMF in doubt as protests sap economy   Full Article 

Islamic Finance

Islamic Finance

Basel III deposit challenge looms over Islamic banks   Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage