In a Bloomberg report Thursday, the Finnish government said its Minister for Communications Krista Kiuru has made the trip to India and met with her local counterpart Kapil Sibal to discuss ways to resolve the issue. On her part, Kiuru said Finland's relationship with India is good and the talks took place "in candid and good spirit", adding the tax issue can be solved.
It was published on Tax-News in Hong Kong. No official news from India though. Sees bogus to me..
Nokia Asked To Settle Indian Tax Bill
by Mary Swire, Tax-News, Hong Kong
04 February 2013
Finnish mobile telephone manufacturer Nokia has been asked to pay INR130bn (USD2.4bn) to the Indian tax authorities after an investigation into alleged evasion.
The offices and factory of the company's Indian subsidiary were raided last month as part of a so-called "survey" operation by the Income Tax Department. Nokia issued a statement at the time stressing that it was "fully cooperating with authorities to ensure they get the necessary information to help in their inquiry."
Department officials have now submitted an interim report on the evasion charge, and it is said that the 150-page document requests that Nokia pay the disputed amount to the tax authorities by March 31.
Of this figure, INR30bn relates to alleged evasion of tax deducted at source (TDS), while the remaining INR100bn is attributed to transfer pricing violations. Collection of the TDS portion will be sought by the end of February.
India has also been in talks with telecoms giant Vodafone in an effort to resolve a protracted dispute over its USD2.2bn tax bill for the acquisition of mobile phone company Hutchinson Essar in 2007. The two parties agreed to come to the table after Vodafone received what it called a "reminder" regarding the case. Finance Minister P. Chidambaram stated recently that he was confident that the issue would be resolved within a comparatively short time frame.
They did it to Vodafone and Vodafone didn't pay a dime.
And with billions being short this stock it wouldn't surprise me at all that this bad news and its perfect timing to stop a monster rally twice was paid for by hedge funds. It's not hard to bribe a few tax officials in India to raid a plant and pull a Vodafone on Nokia.
This whole thing will go away but for now it's weighing on the stock.