India Tells Nokia to Pay US$2.4 Billion in Back Taxes

Mobile phone maker Nokia has been asked to pay INR130bn (US$2.4 billion) to the Indian tax authorities after an investigation into alleged back taxes totaling $545 million.

 

The Finnish company's Chennai facility was raided in January as part of a "survey" operation by the Income Tax Department.

 

Following the raid, Nokia issued a statement denying the allegations. "The actions of the income tax authorities in Chennai are excessive, unacceptable and inconsistent with Indian standards of fair play and governance. We do not see any merit in any of the claims, and are ready to defend ourselves vigorously," said Nokia.

 

Tax authories have submitted an interim report on the evasion charge, and it is said that the 150-page document requests that Nokia pay the disputed amount to the tax authorities by March 31.

 

Nokia isn't the only company fighting claims by Indian officials. Royal Dutch Shell and Vodafone are also facing tax charges.

 

India and Vodafone have agreed to come to the table after Vodafone received what it called a "reminder" regarding the case.
 

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