So $2 Billion of that is for pricing transfer issues. Only 3,000 crore is for the back taxes.
So I don't get it. Nokia is not allowed to download software from their corporate office? What's this? This is absurd!! Why would they have to pay those gypsies for software they already bought and paid for at their corporate office.
There's no way Nokia is gonna pay this. This is extortion. This is gonna get dragged through court for a few years or they'll take less, much less. And if they shut down that plant so what? 9,000 gypsies will be out of work and for $2 Billion Nokia can open up a plant in Hawaii.
I have never heard if anything like this in my entire life.
And yes, we will be lucky to stay above $3.50 tomorrow. The shorts are coming and Goldman will be buying more more hand over fist.
Get rid of this mindless CEO who has no idea what's happening in his own company. Soon!
Sentiment: Strong Buy
That is focked up..... Can someone tell about the credibility of that site? It looks like a Financial Times rip off. No one at the Scandinavian boards have brought this issue to discussion today yet.
I'll tell you why. Cause idiot Elop cut back on costs so much that they didn't have a budget to grease the govt officials that were looking the other way. This moron probably thought bribing officials was wrong or maybe $5 million euros was too much so now we have to pay $2.5 billion. Or maybe our mindless CEO laid off the greaser, the guy who's number one job was to bribe the right guys so they could illegally download windows (doesn't everyone illegally download windows) to the tune of $2 Billion. Man, that's a lot of downloads.
People probably think I'm crazy but something this huge and unexpected doesn't just happen and enormous companies like Nokia with Billions in cash and revenues don't just go around not paying taxes and then illegally downloading software. This is a 2 decade old factory - they know the local laws. There's way more here than we realize and with the right CEO this would have never happened and if it did he would have foreseen it and prepared for it and snuffed it out quiet-like instead of front-page news, 30% haircut to your stock kind of news.
Once again Elop delivers another winner to the shorts. This is the 3rd time I've counted since I've been here in 6 months. This guy is either the most incompetent CEO I've ever seen or he's working with walstreet.
What a Canadian!
PS: my stock options will now be worth $1,000: down from the $10,000 I paid for them just 2 weeks ago or so. Shocking!
Anybody need a new kidney? I need $3,000 to average down with the 2014 $7 calls. Cause nothing has changed here - Nokia is still a strong buy but we're gonna get killed for the next 5-7 days and I see a big bounce off $3 or $3.50. What an incredible time to steal shares when you already know the company has turned around. What a gift this is to those who haven't yet bought in or have the money to add more. God help me to get some extra cash soon!
Sentiment: Strong Buy
HENNAI: The Income tax (I-T) department probing the Nokia tax-evasion case has, in an interim report, said the company should pay Rs 13,000 crore for tax and transfer-pricing violations.
A senior Income-tax official, who requested anonymity, told ET, "We have submitted a 150-page interim report to our office in Delhi," he noted. "Nokia will have to pay Rs 13,000 crore before March 31." Of the Rs 13,000 crore, Rs 3,000 crore is for tax violations and Rs 10,000 crore for transfer pricing issues, the source said. Over the past few weeks, officials from Nokia and audit firm Price Water and Company, the Indian arm of Pricewaterhouse-Coopers, were being questioned in Chennai.
Earlier this month, the Income-tax Department raided the factory and offices of the Finnish company's Indian subsidiary in what it called a 'survey' operation. Covered under this operation were its factory in Sriperumbudur, near Chennai, and its offices in Gurgaon, Haryana.
The department has alleged that the company changed its accounting policy and was also in the process of reorganising the existing business model to bypass certain direct and indirect tax liabilities.
The department has also alleged that Nokia has not made tax payments for software supplies. Two weeks ago, the income-tax department had said that the role of audit firm Price Water and Company in relation to the alleged tax defaults by handset manufacturer Nokia India is also being probed.
A statement issued by Nokia said, "Nokia is fully cooperating with the Indian tax authorities. We are duly responding to all queries raised by them and extending our full support in completing the investigation."
The Nokia plant employs over 9,000 people, 55 per cent of whom are women.
Oh no, is this new?
If this is new we're gonna get killed tomorrow. Oh man, shorts are gonna stomp on us so hard. It's gonna be a bear raid - it will take us back to $3.50 in one day. Ouch!
How can Elop possibly sit on this kind of time bomb for 2 years and have no idea. What an idiot. $2.5 Billion is an enormous hit. I can't believe the mindless moron, CEO wannabe spent $1 Billion on worthless dividends in the middle of an enormous turnarounds while debt was downgraded to junk knowing full well if he needed money dilution would be the only way.
That said, they have a $1.5 Billion credit facility, they need to take it cause I'm sure it's 5% or lower and then $1 Billion from cash. It would still be ok but the stock is gonna take a huge hit, possibly even down to $3 on this - if this is in fact new news. Unreal!!!!
Sentiment: Strong Buy