Boston, MA 02/13/2014 (wallstreetpr) – Nokia Corporation (ADR) (NYSE:NOK) is yet to resolve its tax Dispute with the Indian Government according to its Chairman Risto Diilasmaa. The dispute is hampering the transfer of Nokia’s Indian factory to the US software magnet Microsoft Corporation. The transfer is supposed to be completed in the next 45 days.
Nokia dispute with the Indian government
Indian tax authorities are demanding a total of €250 million from Nokia Corporation (ADR) (NYSE:NOK) as payment of claims that Nokia avoided paying taxes by wrongly claiming exemption on imported software. The total amount that Nokia is being asked to pay include additional amount for claims that the government has not expounded on.
After meeting India’s trade minister Anand Sharma Nokia Interim Chief Executive officer was quick to say “As far as the transaction, if we are not allowed to transfer, we will have a factory, but we will not have a business. And if we don’t have a business, we can’t manufacture anything in the factory”.
Nokia on the other hand has moved to India Supreme court over unrelated $1.1 billion tax squabble. With the intensifying court battles there has been lots of concerns about India’s ability to offer conducive investment environment. There is a high optimism that the two parties will come to an agreement sooner than later paving for full transfer between Nokia and Microsoft.
Nokia to launch a smartphone driven by Google’s Android
Nokia is planning to diversify its products, this is in relation to revelations that it is planning to launch an Android powered smartphone. It is being reported that Nokia Engineers had been developing the Android device even before the acquisition of the company by Microsoft
Nokia Corporation (ADR) (NYSE:NOK) was one of the heavy droppers on Wednesday trading session with its shares dropping by 3.25% to close the day at $7.15
