India, Finland to discuss Nokia tax case next week
Dec 06 2013 , New Delhi
"Two officials from India finance ministry and two official from Finland's finance ministry will meet next week in Delhi and review India-Finland tax treaty and discuss Nokia tax case," a top Finnish government official told PTI.
Nokia and the Indian Income Tax department is fighting out a tax dispute case in Delhi High Court. While Nokia has offered to pay a minimum deposit of Rs 2,250 crore, out of the total tax liability of nearly Rs 6,500 crore, the I-T department has told the Court that the offer is not acceptable.
Nokia had moved the Delhi High Court seeking lifting of stay on transfer of its assets here and offered to pay a minimum deposit of Rs 2,250 crore as tax, contending that the injunction will jeopardise the sale of its Indian arm to US- based tech giant Microsoft under the global deal.
The matter has been listed for December 9 when Nokia has to give details of its assets and liabilities as well as how much tax it has paid here.
Nokia's Chennai plant is one of its biggest facilities. It may be excluded from the $ 7.2 billion agreement between Nokia and Microsoft if the company's assets are not released by December 12.
Finland's Foreign Minister Erkki Tuomioja had last week said that failure to resolve Nokia tax case before December 12 could lead to closing down of the Chennai plant which directly and indirectly employs 30,000 people in India.
The I-T Department had slapped a notice on Nokia's Indian subsidiary for violating withholding tax norms since 2006 while making royalty payments to its parent company in Finland.