UPDATE 1-Nokia protests against Indian tax probe

Tue Feb 12, 2013 4:14pm IST

Related Topics

Stocks

   

HELSINKI Feb 12 (Reuters) - Finnish phone maker Nokia 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 Indian unit said it would challenge a local tax claim on a share sale, while British mobile phone firm Vodafone 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, southern India, 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 ($558 million) 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.

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Banking Sector

Banking Sector

India's laggard state lenders face tough sell on capital raising plan  Full Article 

Falling Oil Prices

Falling Oil Prices

Saudis signal no push for oil cut as market to "stabilise itself"  Full Article 

Raising Stake

Raising Stake

Nippon Life to raise stake in Reliance Capital fund unit  Full Article 

Sterilisation Camps

Sterilisation Camps

Sterilisation targets remain in all but name, critics say  Full Article 

Share Buyback

Share Buyback

Samsung Electronics to buy back $2 billion in shares  Full Article 

Bird Flu Scare

Bird Flu Scare

India orders culling after bird flu outbreaks in Kerala.  Full Article 

Microsoft in China

Microsoft in China

Microsoft to pay China $140 million for 'tax evasion'   Full Article 

Flashback: 26/11

Flashback: 26/11

The three-day attack in November 2008 left 166 dead.  Slideshow 

Reuters India Mobile

Reuters India Mobile

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