Nokia one step closer to Microsoft ownership after getting seized Indian factory returned

Nokia one step closer to Microsoft ownership after getting seized Indian factory returned
Finnish OEM Nokia, who is in the process of selling its Devices and Services business to Microsoft for $7.4 billion, had seen the deal snagged by India's Tax Court. A factory in India, which was one of the assets whose ownership was being transferred to the Redmond based software giant in the transaction, had been seized by Indian authorities because of a tax dispute. The good news is that the factory has now been released back to Nokia.

The bad news is that Nokia still faces a tax bill of as much as $3.4 billion including penalties and interest for non-payment of taxes. The original tax bill was 20.8 billion rupees ($335 million USD) for the five fiscal years that started in 2006-2007. And Nokia had to reach into its wallet to release the seized plant. The Delhi High Court asked Nokia to place 22.50 billion rupees ($367.17 million USD) into an escrow account as a condition for releasing the seized factory. Had Nokia not made the deposit, the plant in Chennai might have been forced to work for Microsoft as a sub-contractor.

India's Tax Court has been actively stepping up its attempts to collect back taxes it says are due by many major international firms with facilities in the country. India faces a budget deficit it needs to reduce and collecting back taxes is one way to close the gap. Nokia, on the other hand, would probably prefer to see India use a bake sale to raise the funds.

source: Reuters



9. SemperFiV12

Posts: 949; Member since: Nov 09, 2010

I will admit... The bake sale was a nice finish. I laughed.

6. 7thspaceman

Posts: 1597; Member since: Feb 14, 2011

wow will Microsoft have to pay Nokia's back tax's to India this could kill the sale of nokia to Microsoft unless some deal is made to handle them.

7. Antonyjoseph

Posts: 217; Member since: Apr 06, 2013

Legal experts in India say that the authorities cannot recover the taxes from MS. They have to do it from Nokia.

8. TechBizJP08

Posts: 495; Member since: Mar 25, 2013

I guess this will be settled by Nokia themselves. Otherwise, Microsoft will be burning a lot of cash. After the 7.4 B, now plus 3.4 B. Man that's alot of cash.

11. cc3493

Posts: 158; Member since: Jul 06, 2013

I still think they shouldve paid more for Nokia's devices business and thus i think MS should also pay that 3.4bil on behalf of Nokia or pay it to nokia to pay to the indian auhtorities.

5. Snoobab

Posts: 175; Member since: Dec 07, 2011

TYPICAL governments, wanting their piece of the pie. GTFO.

4. shuaibhere

Posts: 1986; Member since: Jul 07, 2012

For the first time i'm seeing chennai mentioned in tech news...that' where i live...

10. haseebzahid

Posts: 1853; Member since: Feb 22, 2012

and no one has given a S**t that day :\

12. shuaibhere

Posts: 1986; Member since: Jul 07, 2012

So.what are coming to say????which day????

13. shuaibhere

Posts: 1986; Member since: Jul 07, 2012

Are you pakistani???? It seems so....

1. yadu004

Posts: 72; Member since: Apr 26, 2013

What about the Nokia Lab in my Engineering College? ;)

2. xperiaDROID

Posts: 5629; Member since: Mar 08, 2013

Then what about me? I have no Kia.

3. Moodi

Posts: 38; Member since: May 11, 2013

i have to admit you are damn funny +1 from me

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