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Nokia CEO takes up tax issue with Sharma

‘Chennai factory to have no work if Rs21,153 cr liability dispute unresolved’.

Chairman and interim CEO of handset manufacturer Nokia, Risto Siilasmaa, on Wednesday, met commerce minister Anand Sharma and tax authorities in a bid to resolve the Rs 21,153 crore tax liability it faces and discuss the firm’s future plans in the country. The move comes a day after the government decided to withdraw the conciliation offer made to Vodafone regarding the telecom firm’s long-pending Rs 20,000-crore tax dispute with the Income Tax department.

“We had a very good discussion on the topic of ongoing taxation issues between Nokia and the local tax authorities and the continuation of our Chennai factory. We are working… that the factory will continue.. Of course we are concerned about the jobs at stake at the Chennai factory,” Siilasmaa told reporters after meeting the commerce minister. The Finnish handset maker’s CEO warned that the Chennai factory may shut down if the tax liability issue is not resolved.

The factory is among assets to be transferred to Microsoft, which is acquiring Nokia’s handset business.

The company is entangled in a legal dispute with the Income Tax department regarding violation of withholding tax norms since 2006 while making royalty payments to its parent company.

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“We are not planning to cut jobs in Chennai factory but the question is whether we are allowed to transfer the factory to Microsoft. If we are not allowed to transfer, we will have a factory but no business. And if we don’t have a business, we can’t manufacture anything in the factory. And that would be detrimental to our employees,” Siialsmaa said.

Firm moves SC against Delhi High Court order

New Delhi: Nokia India has moved the Supreme Court challenging the decision of the Delhi High Court which asked the company to give an undertaking to fulfil the conditions relating to payment of tax dues. The court had imposed certain conditions on Nokia India and its parent firm Nokia Corporation Finland. PTI

 

First published on: 13-02-2014 at 02:24:49 am
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