Temporary relief for Nokia Oyj (HEL:NOK1V) in $368 million tax evasion- HTC

Boston, MA, 03/30/2013 – Nokia Oyj (HEL:NOK1V)(Steady at 2.52 EUR) has come under the scanner of Indian tax authorities. The Espoo, Finland-based company has been asked to pay $368 million (20 billion rupees) in missing taxes to the government of India. The mobile-phone maker is already in the eye of the competition storm and has been suffering losses from a drastic dip in sales. It has faced huge losses at its handset unit and the Delhi High Court has now granted it an interim stay on the unpaid tax claim by the Indian tax department.

Company denies tax-evasion charge

Brett Young the Nokia spokesperson said that the company has not broken any local laws and has been in compliance with all its tax liabilities. He also confirmed that the company has received the order from Indian tax officials. He said that Nokia will defend its stand as it has not broken any tax treaty agreement between the Indian and Finland governments. In February, Nokia Oyj (HEL:NOK1V)  filed complaint letters against the investigation carried out by authorities and said that factories had been trespassed and computer systems accessed. The company has not specified or confirmed the actual amount that has been demanded in taxes.

Changes in the company ranks

The current head of Nokia Oyj (HEL:NOK1V)’s India, Africa and Middle east operations Shiv Shivakumar will be leaving the company by June end and Art Nummela will be taking his place. At the moment Nummela is head of the company’s North America smartphone business. Another announcement that the company, made was that Florian Seiche who was the head of HTC Corp (TPE:2498) (Current: TWD244.50, Up by 0.20%)’ Middle East, Europe and Africa operations will be joining Nokia on June 15 in the capacity of head of European sales.

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