Printed from http://www.electronista.com

Nokia: Tax issues in India will not affect Microsoft's acquisition

updated 03:31 pm EST, Fri February 14, 2014

New conditions in India High Court appealed, should not affect purchase

The $7.2 billion acquisition of Nokia's phone business by Microsoft is still going ahead, and is still expected to complete sometime this quarter, the company has announced in a statement. The transfer of Nokia's Devices and Services division to Microsoft will continue, with the phone manufacturer claiming its tax issues in India will not delay Microsoft's purchase at all.

A claimed unpaid tax bill claimed to be worth around $3.4 billion is at the heart of the issue, according to the Economic Times. After an initial hearing in December, the Delhi High Court allowed for the Chennai factory to be transferred under the deal, so long as a payment to the government is made as a guarantee. Last week, the court added extra conditions that required a guarantee payment to kick in when tax authorities in the country raise the amount demanded in back-taxes. Nokia is appealing the ruling.

The statement from Nokia stresses it believes the deal will not be affected by the tax proceedings, with the timing and deal itself expected to remain as they currently are. "The transaction is still expected to close in the first quarter of 2014, subject to regulatory approvals and other customary closing conditions, irrespective of the proceedings in the Indian tax case," reads the statement.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

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

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Kodak PixPro SL10 Smart Lens Camera

Smartphone imagery still widely varies. Large Megapixel counts don't make for a good image, and the optics in some devices are lacking ...

Sponsor

toggle

Most Commented

 
toggle

Popular News