Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) Oyj has down played a multi-billion Rupee tax demand from Indian Tax Authorities saying that the firm is in full compliance with the laws related to its business operations and would continue to fight the claim.
The Delhi High court, has granted an interim stay on the demand after the mobile phone manufacturing company filed a petition challenging the order.
“Nokia reiterates its position is that it is in full compliance with local laws as well as the bilaterally negotiated tax treaty between the governments of India and Finland and will defend itself vigorously,” the company said in a statement.
The tax order, if enforced, would add troubles for the Finnish mobile maker in keeping up with its strained finances due to falling sales. The company had to cut off its annual dividend payment for the first time in its history to grapple with the financial set back.
According to a local publication, Royal Dutch Shell plc (ADR) (NYSE:RDS.A) (NYSE:RDS.B), Vodafone Group Plc (NASDAQ:VOD) (LON:VOD) and LG Electronics Inc. (KRX:066570) (KRX:066575) Inc are among numerous multinational firms involved in tax disputes in India, and have challenged the orders.
The company lawyers have assured the court that no remittance or a funds would be transferred outside the country, except in the normal dealings of business, until the next date of court hearing.
“In this regard, Nokia filed a writ before the Delhi High Court last week and on Friday, March 22 the Court has issued notice to the Income Tax department to file its counter affidavit and has granted interim stay of the entire tax demand raised against Nokia till further orders,” a Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) spokesperson said in a statement to PTI.
Indian Income Tax department conducted a ‘survey’ operation on the company’s factory in Chennai and offices in Gurgaon, Haryana, earlier this year.