Nokia protests against Indian tax probe

HELSINKI Tue Feb 12, 2013 4:18pm IST

A man using his mobile phone walks under a Nokia logo in Shanghai December 6, 2012. REUTERS/Aly Song/Files

A man using his mobile phone walks under a Nokia logo in Shanghai December 6, 2012.

Credit: Reuters/Aly Song/Files

Related Topics

Stocks

   

HELSINKI (Reuters) - Finnish phone maker Nokia (NOK1V.HE) said on Tuesday it was protesting against a tax investigation in India, a crucial market, in the latest dispute involving a foreign company's tax.

Nokia said it has not yet received any information on potential claims resulting from the investigation that started in January.

Last week, Anglo-Dutch oil major Royal Dutch Shell's (RDSa.L) Indian unit said it would challenge a local tax claim on a share sale, while British mobile phone firm Vodafone (VOD.L) is trying to settle a long-running $2 billion tax dispute with Indian authorities.

Countries like India are crucial for Nokia's attempt to hold on to global market share. Earlier on Tuesday, it announced an expansion of its Asha line of low-end smartphones and India is widely seen as a key market for such cheaper models.

Nokia said the actions of the tax authorities were "unacceptable and inconsistent with Indian standards of fair play and governance."

The company objected to officials entering its factory in Chennai, which is one of its biggest facilities. Nokia said it has invested over $330 million in Chennai since setting up the factory in 2006.

A senior Indian tax official said in January that the investigation related to allegations that Nokia may have evaded around 30 billion rupees in taxes.

Nokia said on Tuesday it was in full compliance with local laws as well as a bilateral tax treaty between India and Finland related to withholding tax. (Reporting by Ritsuko Ando; Editing by Erica Billingham)

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
People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro Q4 net profit beats estimates, rises 29 percent

Wipro posted a 29 percent rise in its fourth-quarter net profit, beating expectations, helped by increased IT spending by its customers. For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier.  Full Article | Full Coverage 

REUTERS SHOWCASE

Literary Giant Dies

Literary Giant Dies

Nobel winner Garcia Marquez, master of magical realism, dies at 87.  Read 

Election 2014

Election 2014

India holds biggest day of voting with BJP gaining strength  Full Article | Full Coverage 

Insider Trading

Insider Trading

Ex-Goldman director Gupta starts prison term on June 17.  Full Article 

Market Eye

Market Eye

Sensex jumps 351 points, snaps 3-day losing streak  Full Article 

Expansion Plans

Expansion Plans

Reliance Industries, HPCL Mittal plan refinery expansions.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Deal Talk

Deal Talk

Piramal to buy 20 percent stake in Shriram Capital for $334 million.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

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