Nokia says Indian tax dispute won’t stop Microsoft deal
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Nokia says Indian tax dispute won’t stop Microsoft deal

Whereas a tax dispute in India over Nokia’s manufacturing plant in Chennai continues to rage, the corporate says it won’t trigger any issues for closing the sale of its Gadgets and Providers enterprise to Microsoft.

Earlier this week, Nokia appealed a ruling by the Delhi Excessive Court docket that stated the corporate owed greater than €250 million in taxes, primarily as a result of the it says the corporate claimed an improper exemption on software program exports. Earlier reviews expressed concern that the continuing litigation would delay the corporate’s deal with Microsoft, however Nokia says that’s not the case.

“Nokia wish to stress that latest developments in India associated to ongoing tax proceedings are usually not anticipated to have an effect on the timing of the closing nor the fabric deal phrases of the anticipated transaction between Nokia and Microsoft, introduced on September 3, 2013,” the corporate stated in a press release at present.

Along with its current tax invoice, the Excessive Court docket additionally stated that Nokia could be required to pay claims the nation’s tax authority has not but made.That’s why Nokia appealed, saying that it ought to have the ability to dispute in courtroom any future fees, quite than being obligated to pay them with out realizing what they’re.

The corporate has been slated to switch the Chennai manufacturing unit to Microsoft as part of the sale of its Gadgets and Providers enterprise, however the authorized wrangling over taxes might put a wrench into these plans. Nokia’s Chairman and Interim CEO Risto Siilasmaa met with Anand Sharma, India’s Commerce Minister, to debate the dispute earlier this week, according to the Wall Street Journal.

“We had an excellent dialogue on the subject,” Silasmaa instructed the Journal.

Nokia stated in a press launch that it nonetheless expects the deal with Microsoft will shut by the top of the primary quarter of this yr. Tax points apart, Nokia is rumored to be launching a brand new smartphone that runs Android at Cellular World Congress this month.

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