Entries with tag tax disputes.

Indian Government Lets Embattled Nokia Transfer Factory to Microsoft

Nokia has won an appeal in its ongoing tax dispute with the Indian government, allowing the company to transfer one of its major factories to Microsoft, which plans to buy Nokia’s mobile-device business for $7.4 billion in early 2014. Indian officials had frozen Nokia’s local assets pending resolution of its tax issues. However, a court in the country let the company transfer its local factory to Microsoft, as long as it deposited $367.17 million in an escrow account. The government could receive those funds, depending on the outcome of the tax case against Nokia. The plant in Southern India is among Nokia's largest. Nokia claims the Indian government served it in March 2013 with a bill for 20.8 billion rupees ($330 million) covering five fiscal years. However, India’s tax department has claimed at various times that Nokia owes 78 billion rupees ($1.25 billion) or more than 210 billion rupees ($3.38 billion). Nokia says it has already paid €85 million ($116.7 million) of its tax liability. The dispute threatens the company’s deal with Microsoft. Several foreign companies—including IBM, Royal Dutch Shell, and Vodafone—are currently in tax disputes with the Indian government. “The government’s retroactive application of tax laws and efforts to collect back taxes have made foreign companies wary of setting up operations in India,” wrote the New York Times. (Reuters)(The New York Times)

Showing 1 result.