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

Adesso Xtream S3B Bluetooth speaker

Finding a speaker purpose-built for a specific need is challenging. Even when a Bluetooth speaker can be paired with a mobile device, ...

JBL Synchros E40BT headphones

For all the different configurations of headphones on the market, it's always a tough choice for buyers to get something that is just ...

Razer Taipan mouse

The list of gaming devices is growing larger with each passing day. A large number of companies have entered the gaming input arena, a ...

Sponsor

toggle

Most Commented

 
toggle

Popular News