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."