Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is protesting the tax probe being conducted by authorities in India. Reuters reports that the company said it has not yet received details on any claims that may result from the tax investigation, which began over a month ago.
Indian officials raided Nokia’s Chennai factory in January over allegations of tax evasion. The Finnish company called the actions of Indian tax officials “unacceptable and inconsistent with Indian standards of fair play and governance.” Nokia also said its investments into the Chennai factory have totaled more than $330 million, since it set up the factory more than six years ago.
Indian tax authorities say Nokia is accused of evading about 30 billion rupees’ worth of taxes. Officials at Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) say the company complies with all tax laws in India.
India and other emerging mobile phone markets are important for handset makers, especially Nokia, which is attempting to regain some of the global market share that has been taken from it by Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930).
Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is the latest in a line of foreign companies facing an investigation by Indian tax authorities. According to Reuters, Royal Dutch Shell plc (ADR) (NYSE:RDS.A) (NYSE:RDS.B) and Vodafone Group Plc (ADR) (NASDAQ:VOD) are both being investigated on tax evasion charges in India.
Royal Dutch Shell plc (ADR) (NYSE:RDS.A) (NYSE:RDS.B) is challenging a tax claim on a sale of shares, and Vodafone Group Plc (ADR) (NASDAQ:VOD) is attempting to settle a long-time $2 billion dispute in the country.
