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I-T raid at Nokia's Chennai factory

Source : IBNS
Last Updated: Wed, Jan 09, 2013 04:53 hrs

Chennai: Indian tax officials raided Finnish cellphone maker Nokia's facilities in Chennai and Gurgaon on Tuesday, to probe charges of alleged tax evasion.

The raids were to investigate possible tax avoidance measures applied by the Indian arm of the company, including acquiring components and software at a higher price from its Finnish parent and subsidiaries

The measures which bring down profit and tax liabilities for the Indian unit could have led to a default in tax deducted at source (TDS) and undeclared incomes worth over Rs 2,000 crores, media reports said.



The Indian government has been clamping down corporate tax avoidance measures to help the country tackle its ballooning fiscal deficit, taking on global giants such as Vodafone and Cadbury in recent months.

In a statement, Nokia said, "Earlier today, tax officials visited Nokia's manufacturing unit in Chennai. Nokia is fully cooperating to ensure they get the necessary information to help in their inquiry."

"As a global company, Nokia consistently fields a large and steady number of tax queries, audits and assessments. Nokia's commitment to being a good corporate citizen is firm and unwavering," the statement said

"We always observe applicable laws and rulings in the countries where we operate. This has been a core principle of our operations in India, where Nokia has been present since 1995," it added.

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