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Nokia's solution to Indian tax dispute
Nokia's latest problem revolves a tax dispute in India, which could lead to the closure of its plant in Chennai, if its assets are not unfrozen.
Nokia has now offered to pay a deposit USD 369 million, to the Indian authorities in an attempt to unfreeze its assets in the ongoing tax dispute, reports Reuters, citing sources familiar with the matter. The Finnish firm has earlier agreed to pay some USD 116.8 million, and with the latest offer, the combined payment would exceed the income tax bill of USD 338 million demanded by Indian authorities. However, Nokia hopes to retrieve the payments if the tax dispute is resolved in its favour, the report continues. The EUR 5.4 billion deal between Nokia and Microsoft – expected to close in the first quarter in 2014 – is not expected to be affected by the dispute. However, a lengthy conflict could complicate things.