Nokia files complaint over India tax raid

Nokia files complaint over India tax raid

Summary: Finnish phonemaker sends letter of complaint to Indian tax authorities, saying the tax raids on its Chennai factory in January were against local laws and international standards.


Finnish phonemaker Nokia has filed a letter of complaint to Indian tax authorities, a month after the tax raid of its Chennai factory.

Nokia says tax raid on its Chennai factory is against global standards.

According to a a Wall Street Journal report Tuesday, Nokia said the tax raid was not only "counter to the domestic laws of India and international standards" but also "excessive, unacceptable and inconsistent with Indian standards of fair play and governance".

The phonemaker added India's tax authorities had not stated the reason for the tax raid. It said the company was in compliance with Indian laws as well as the bilaterally negotiated Finnish and Indian tax treaty.

Nokia said its transfer pricing policies were "fully in accordance with applicable legislation in India and Finland".

According to media reports, unnamed tax officials said the raid appeared to be related to tax due on payments which Nokia India made for software supplied by its parent company for devices manufactured in India. Reports pointed to allegations of tax evasion of about US$545 million.

A week following the raid, the Finnish government sent its Minister for Communications Krista Kiuru to India to discuss with her local counterpart, Kapil Sibal, on ways to resolve the issue.


Topics: Legal, Nokia, Smartphones, India

Liau Yun Qing

About Liau Yun Qing

The only journalist in the team without a Western name, Yun Qing hails from the mountainy Malaysian state, Sabah. She currently covers the hardware and networking beats, as well as everything else that falls into her lap, at ZDNet Asia. Her RSS feed includes tech news sites and most of the Cheezburger network. She is also a cheapskate masquerading as a group-buying addict.

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  • Finnish Govt shd have acted when Elop announced deadly partnership with MS

    Had the Finnish Govt acted when Stephen Elop announced deadly partnership with Microsoft, Nokia would not have been in such a poor condition now, making loss after loss, selling all properties, laying off 30,000 employees, etc.

    The govt should have recognized easily because hundreds of experts told on 11 Feb 2010 that the partnership is completely one-sided on Microsoft and it will kill Nokia.

    There was no question of migration. Nokia should have simply added WP and Android to its portfolio along with existing Symbian and MeeGO. No other company can do this kind of killing its own software and going with an unproved (2%) OS whole and sole.

    Even after 2 years of partnership, Nokia is able to sell hardly 10 million an year. What a joke!

    Still, there is time for the govt to recognize the illegal deal.
    Nandan N