Nokia Tax Case: Delhi High Court Unfreezes Bank Accounts But Other Assets Remain Under Seize

Image Credit: Shutterstock.com
Image Credit: Shutterstock.com

Phone maker Nokia on Tuesday said that the Delhi High Court has unfrozen some of the companies assets seized by tax authorities.

Nokia said in a statement

Late last week, the Delhi High Court ruled in Nokia’s favor in a case where the Indian tax authorities froze some of Nokia’s assets for potential claims that hadn’t even been raised against the company yet.

While the bank accounts were released, other Nokia assets remain under seize.

The company, involved in a bitter tax dispute with Indian authorities, told Reuters that it doesn’t expect the move to delay the sale of its handset business to Microsoft. The Nokia tax case has been festering for many months now.

In June, tax authorities dismissed Nokia’s appeals against a tax demand of Rs 2080 cr. The Finnish handset maker had appealed at the Delhi High Court against the tax demands. Nokia’s India unit was served in March with the tax demand for five years starting from 2006/07, in one of several tax disputes involving foreign companies in India.

A couple of months before hat the tax authorities had raided the company’s premises in Chennai for a suspected tax evasion to the tune of more than half a billion dollars.

Last month,  Nokia threatened to shut its Indian plant, which employs nearly 8000 people. The mobile phone manufacturer has told the Center that India has become the “least favorable market” and that it would prefer to exit and import phones from China for sale in the country.

Meanwhile, it was reported that the government of Finland is trying to negotiate a settlement between Indian tax authorities and Nokia over the tax dispute.

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