Printed from http://www.electronista.com

India tax authority: Nokia owes up to $3.4 billion in back taxes

updated 10:22 pm EST, Tue December 10, 2013

Chennai plant seized by tax authority, Nokia offers deposit to release assets

Some confusion exists in India about back taxes owed by Nokia, which is potentially complicating the Microsoft purchase of the embattled cellphone manufacturer. An Indian court has stayed a hearing about a seizure of a factory in Chennai, and is seeking additional information from the cellphone manufacturer on the value of the facility. Additionally, various accounts claim that Nokia owes either 20.8 billion, 78 billion, or 210 billion rupees ($400 million, $1.28 billion, or $3.4 billion respectively) in taxes to the Indian government.

The Delhi high court is going to hear from both the tax authority and Nokia on Wednesday, regarding the value of the factory. Nokia claims to have only been informed of a $400 million tax debt, and questions the veracity of the higher amounts. Nokia has offered to pay $369 million to release assets that have been seized in the country, according to sources familiar with the matter.

A statement earlier today from Nokia claimed that "in recent months we have seen and read about many claims from the tax authorities. We feel they are without merit and will defend ourselves vigorously in court." The company is expected to turn the plant over to Microsoft as part of its buyout deal. The deal is worth $7.43 billion, with the potential tax debt owed to India a significant portion of this amount.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

Prong PWR Case

Ultimately there's one thing we all want from smartphone accessories; we want options. When it comes to keeping our iPhone charged, we ...

iHome iBT74 Color Changing Bluetooth Speaker

There's no reason why your tech can't look good while doing what it was designed to do. That's the reason that sports cars look good a ...

Logitech Gaming Daedalus Prime Mouse

Logitech Gaming continues to expand upon its peripherals line, with each one looking to fit neatly into a breadth of gaming needs. Bui ...

Advertisement

toggle

Most Commented