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:

"India's Daughter"

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

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