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

Pricing Controls

REUTERS SHOWCASE

India-China Relations

India-China Relations

India says to defend China border after standoff ahead of Xi visit.  Full Article 

Importing Iron Ore

Importing Iron Ore

As mining curbs bite, India offers market to glut-hit iron ore.  Full Article 

Lower Output

Lower Output

IOC cuts refinery output as rains hit fuel demand - source.  Full Article 

Drug Approval

Drug Approval

Epirus, Ranbaxy win India approval for arthritis drug copy.  Full Article 

Farming and Technology

Farming and Technology

Climate smart farmers get tech savvy to save India's bread basket.  Full Article 

Rajan Speaks

Rajan Speaks

RBI chief Rajan says limiting reliance on foreign debt.  Full Article 

India-Vietnam Ties

India-Vietnam Ties

India tightens Vietnam defence, oil ties ahead of China Xi's visit.  Full Article 

Debt & Equity Deal

Debt & Equity Deal

KKR to lend $175 million to GMR Infrastructure - source.  Full Article 

Preparing for IPO

Preparing for IPO

Alibaba boosts IPO as demand strengthens.  Full Article 

Reuters India Mobile

Reuters India Mobile

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