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Delhi High Court lifts Nokia’s Chennai plant freeze paving way to its transfer to Microsoft.

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Delhi High Court has ordered Nokia to deposit 22.5 billion rupees ($367 million) in an escrow account, as a condition for lifting the freeze from Nokia India’s attached assets. Due to an ongoing tax dispute with Income-Tax authorities in India, Nokia’s assets were seized and it was apprehended that Chennai plant may be left out of the deal. Now, this court order paves way to transfer of Chennai manufacturing plant to Microsoft as a part of the global Microsoft-Nokia’s deal.

The tax demand case will still continue and according to claims by an Income tax department lawyer, Nokia can be slapped with a tax demand as high as $3.4 billion, which includes penalties for non-payment of tax and interest.

Including the tax bill for the years that have not been assessed by the Indian authorities, the total liability could rise to roughly 75 billion rupees, Reuters reported on Dec. 11, citing the tax department’s lawyer. If Nokia loses the legal battle, it may have to pay as much as 210 billion rupees ($3.44 billion), including penalties and interest, the lawyer said.

Though Nokia has denied receiving any such high tax claims from authorities, after the initial $340 million tax demand.

In a statement issued before the court’s final order, Nokia said it “has not received any official information on the potential tax claims, and thus far has only seen wildly varying claims from anonymous officials via the media. We do not see any merit in any of the claims.”

Nokia is not alone and companies like IBM, Vodafone, Royal Dutch Shell etc have been at receiving end of such tax demands in India.  This certainly doesn’t help India’s image of a favorable destination for MNCs.

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Via

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Nayan

Nayan has more than 10 years of experience of covering Technology and innovations. He is a big Nokia fan and Tech disruptions aficionado. He loves to review new cool gadgets and writing about Android, iOS, Gadgets and general Technology stuff. He has been associated with other well-known Tech sites WinCentral and GadgetOx since long.

He currently sports a Lumia 950 XL and Nexus 5X. Other interests include listening to Nu-Metal Hits and Kick-Boxing.
Write to him at Email: [email protected]

http://www.nokiapoweruser.com
  • Svedu

    This thing has been going on since january. But still there has not come a single pressrelease from Nokia about the matter. Not even today. I read rumors about billions of euros in penalties, and I read about Nokia representatives saying things to certain news sites. But not a single pressrelease from Nokia. That is strange. Dont really know what to believe.

    • Kamal

      These cases linger for many years. False claims and counterclaims are made to put pressure on each other. Nokia will be wise to get rid somehow, may be by getting some help form Finnish government.

      • Scout

        Nokia / MS would be wice to leave India behind as producing country. This kind of taxing mess India is doing, will alarm all big names. Its sure that these kind of actions by India goverment doesn’t courage other OEM:s to produce NOTHING at India. Investemnts will also end. People at India will suffer the most.

        India is cutting a tree it is sitting on.

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