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:

Religion and Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

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