India's tax authority says that Microsoft originally wanted to buy a stake in Nokia

India's tax authority says that Microsoft originally wanted to buy a stake in Nokia
In India, prosecutors have Nokia in court over a large tax bill that amounts to INR 21,153 crore (a crore is a unit of 10 million). The figure, which was calculated by the director general of income tax and the chief commissioner of income tax, is at issue in India's Tax Court. According to the Indian Tax Authority, Microsoft's original deal with Nokia was designed with the Redmond based software giant taking a stake in the Finnish handset manufacturer and the deal's final evolution, which ended with Microsoft buying Nokia's Devices and Services business, is a "convenient coincidence and is an internal collusive agreement".

The original tax case came from the result of seven years of payments from Nokia India Private Limited to Nokia Corporation without any taxes withheld by the Indian company. As far fetched as it seems, the Tax Authority in India is claiming that Microsoft and Nokia revised the deal from an equity investment to an outright purchase of assets to help Nokia paying avoid Indian taxes. That does seem a little hard to swallow, but read the statement below and you can come to your own conclusion.

The Financial Express newspaper in India noted that "The ACIT (India's Tax Authority) has also drawn attention to the fact that the Microsoft-Nokia agreement has undergone two amendments without there being any independent valuation of assets by a third party."

source: FinanacialExpress via NokiaPowerUser, WMPoweruser



4. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Microsoft buying an interest in Nokia instead of the whole Devices & Services Division would have been much more palatable. The Nokia name and consumer trust would have still been out there plus Microsoft could keep their OS on Nokia phones. Come 2016, Nokia can come back with Android or Sailfish and Microsoft will only have stale Lumias and Ashas and (for some strange reason) the right to make feature phones and put the Nokia name on them. They both would have been better off if Microsoft bought their outstanding stock and a few seats on the board. I personally hope Nokia comes back hard in 2016.

6. nokia12

Posts: 610; Member since: Nov 19, 2013

+1 the best thing about this deal is that nokia is done with microsoft now .. and they didn't even gave ms the right to use "nokia" name on smartphone that is the best thing .. the likely effect is going to be all other OEM back out from windows phone .. who wants to compete with microsoft who controls their own OS ? microsoft introduces lumia or MS lumia .. some units will sell in USA where ms has strong market presence .. but only 5 % market share but it will flop in countries like India and china which has a good windows phone market share because of lumia 520 .. people will be like wtf a ms lumia phone ha ha it looks like a cheap copy cat of nokia phones btw nokia has invested in tizen OS maybe they are planning to go in every OS by 2016

8. chandancherry

Posts: 32; Member since: Jun 25, 2013

+1 thank you for showing a +ve side of this deal concerned with Nokia's future.. Hopes On!!

3. alterecho

Posts: 1106; Member since: Feb 23, 2012

So does this affect the the merger in anyway, or is it just talk?

7. alterecho

Posts: 1106; Member since: Feb 23, 2012

I've read those before. Looks like the deal will still fall throuh.

2. srvricky

Posts: 18; Member since: Jul 14, 2013

Really ask an Indian about the Tax authority of India :) u people need to learn a lot about them.

1. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Trojan Flop and Money Mortimer had a mission all along, and it was to buy Nokia and ruin it. And now, mission accomplished. Please send these two greedy hamsters to Apple, I want them to blend it to Apple juice.

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