Nokia seeks resolution of India tax dispute under bilateral pact

NEW DELHI/HELSINKI Wed May 14, 2014 7:53pm IST

A photo illustration of a man silhouetted against a Nokia logo in the central Bosnian town of Zenica January 23, 2014. REUTERS/Dado Ruvic/Files

A photo illustration of a man silhouetted against a Nokia logo in the central Bosnian town of Zenica January 23, 2014.

Credit: Reuters/Dado Ruvic/Files

Related Topics

Stocks

   

NEW DELHI/HELSINKI (Reuters) - Nokia Oyj (NOK1V.HE) has written to the Indian Prime Minister seeking an "amicable resolution" of its tax dispute in the country, the Finnish company said on Wednesday.

Nokia, which was last year served with a tax demand of about $348 million, could have to pay as much as $3.5 billion, including potential claims, interest and penalties, if it loses a legal battle over the demand, a lawyer for the tax office said in December.

Nokia's tax dispute is one of several such disputes involving foreign companies in India. Vodafone Plc (VOD.L), IBM Corp (IBM.N) and Royal Dutch Shell Plc (RDSa.L) are among the other foreign firms contesting Indian tax claims.

Nokia said in a statement its letter was seeking a resolution to the dispute under an investment pact between India and Finland dating back to 2003, but did not elaborate on the letter's content.

A Nokia spokesman in Helsinki declined further comment. The Indian Prime Minister's office was not immediately available for comment.

Nokia last month completed the $7.5 billion sale of its mobile handsets business unit to Microsoft Corp (MSFT.O), but excluded its Indian handsets plant from the deal, pending resolution of the tax dispute.

Vodafone last week said it had begun an international arbitration against the Indian government in its more than $2 billion dispute.

($1 = 59.7800 rupees)

(Reporting by Devidutta Tripathy and Jussi Rosendahl; Editing by David Holmes)

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

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

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