CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Nokia's Indian Tax Row Escalates

Nokia's Indian Tax Row Escalates

by Mary Swire, Tax-News.com, Hong Kong

07 January 2014


The Indian Income Tax Department has sought "directions/clarifications" regarding the Delhi High Court's decision to unfreeze assets seized from Nokia.

The assets were frozen late last year, in an effort to claw back taxes the Department claims Nokia owes. The mobile phone manufacturer was asked to pay a INR20.8bn (USD334.3m) bill for royalty taxes relating to the period between 2006-07 and 2011-12.

Nokia appealed to the New Delhi High Court to unfreeze the assets in time for Microsoft's December 12 takeover deadline. It proposed that the entire proceeds of the sale of its Chennai factory to Microsoft – estimated at INR22.5bn – would be handed over to the taxman. The Court agreed to Nokia's suggestion, albeit on the condition that the full amount be deposited in an escrow account as a security. The firm's parent company, Nokia Corporation, is required to pay up to INR35bn in taxes.

The Department has now written to the Court, requesting that "for the sake of clarity," directions need to be issued for placing the INR22.5bn in an escrow account "preferably in India." The Department is also seeking "directions/clarification for payment of the said amount of INR35bn as and when the demand is raised and is due for payment."

TAGS: compliance | tax | tax compliance | India | tax avoidance | law | tax authority | tax planning | revenue statistics | Tax | Tax Evasion

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »