Indian government orders special audit of Nokia India Accounts – likely to complicate Microsoft deal
The Indian government at a national and local level has been at odds with Nokia for months over allegations of unpaid taxes and subsequently seized manufacturing plant in Chennai. This facility is a significant part of the deal for Microsoft to take over Nokia Devices and Services, and could knock more than $1 billion off the $7.2 billion deal if Nokia is ultimately not allowed to transfer that asset, along with its 8,000 employees to Microsoft.
The audit, which could take up to six months or more to complete, will look at Nokia India’s accounts, perform a valuation of the assets and transactions. A Nokia spokesman in Finland simply noted that, “As with all tax discussions in India, Nokia will cooperation with the authorities and, where necessary, defend itself vigorously.”
This issue in India, along with a few other regulatory hurdles in Asia, has caused the expected merger between Microsoft and Nokia Devices and Services to be postponed from the end of March to the end of April, though spokesmen for both companies continue to state that problems in India will not stop the merger.
The Indian government is trying to get Nokia on the hook for more than $3 billion in taxes, some of which have not even been assessed yet. Moreover, India is demanding Nokia pay about $500 million of that upfront. Another $400 million is being demanded by the Tamil Nadu state government for taxes on devices its says were built and ultimately sold in India, something that Nokia denies and faces its first hearing on the matter April 1st.
source: The Wall Street Journal
Posts: 399; Member since: Nov 09, 2013
posted on Mar 30, 2014, 1:30 AM 6
Posts: 1656; Member since: Jun 06, 2010
posted on Mar 30, 2014, 1:45 AM 8
Posts: 3297; Member since: Nov 15, 2013
posted on Mar 30, 2014, 2:14 AM 2
Posts: 217; Member since: Apr 06, 2013
posted on Mar 30, 2014, 8:22 AM 1
Posts: 4562; Member since: Mar 13, 2014
posted on Mar 30, 2014, 8:15 AM 2
Posts: 367; Member since: Feb 02, 2012
posted on Mar 30, 2014, 8:19 AM 1
Posts: 1268; Member since: Mar 30, 2012
posted on Mar 30, 2014, 3:38 AM 5
Posts: 6023; Member since: Dec 30, 2010
posted on Mar 30, 2014, 7:40 AM 1
Posts: 1597; Member since: Feb 14, 2011
posted on Mar 30, 2014, 9:18 AM 0
Posts: 2315; Member since: Jul 30, 2011
posted on Mar 30, 2014, 9:20 AM 0
Posts: 346; Member since: Jan 30, 2012
posted on Mar 30, 2014, 12:42 PM 1
PhoneArena Comments Rules
A discussion is a place, where people can voice their opinion, no matter if it is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
- Off-topic talk - you must stick to the subject of discussion
- Trolling - see a description
- Flame wars
- Offensive, hate speech - if you want to say something, say it politely
- Spam/Advertisements - these posts are deleted
- Multiple accounts - one person can have only one account
- Impersonations and offensive nicknames - these accounts get banned
Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a post should be moderated - please, report it.
Have a question about the rules or why you have been moderated/limited/banned? Please, contact us.
Send a warning to post author
Send a warning to Selected user.
The user has 0 warnings currently.
Next warning will result in ban!
Ban user and delete all posts
Message to PhoneArena moderator (optional):