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© tom-schmucker-dreamstime.com General | December 04, 2013

Tax dispute might force Nokia to close in India

The Finns might be forced to close its plant in Chennai, India if an ongoing tax dispute is not resolved – and its assets not unfrozen – by December 12.
Nokia received the tax demand on March 21, for not deducting tax from the payment made to its parent for the software used in handheld products, according to a report in India Times.

By the looks of things, the plant is now likely to be left out of the deal between Nokia and Microsoft; that is if the company's assets are not released by December 12.

Worst case scenario, would be the closing of the facility, which in turn would affect some 8'000 employees, along with the sub-contractors which would be another 30'000 people, Finland's Foreign Minister Erkki Tuomioja told India Times.

Nokia has previously tried to solve the matter by offering to pay parts of the tax demand in order to get its assets unfrozen. The offer was however declined and Nokia is taking the matter to the Delhi High Court, the report concludes.
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December 11 2018 11:40 pm V11.10.6-2