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Nokia Auditors to Be Quizzed Over Tax Evasion Allegations
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The auditors who signed off on Nokia's Indian tax returns are to be questioned by the Income Tax Department this week in advance of Nokia's own staff being questioned.
The matter arises from allegations that the company did not pay taxes on software licenses for its Sriperumbudur handset manufacturing plant.
"It is only based on the wrong advice of Price Waterhouse that Nokia had evaded tax payment. We have proof for this in the form of e-mail correspondence between Price Waterhouse and Nokia," an official of the I-T Department told the Business Line newspaper.
The I-T Department raided several Nokia offices last week as part of the investigation into the allegations - which reportedly amount to around US$450 million dating back to 2006.
India imposes a 10% tax on any payments made by a local subsidiary to a foreign parent company for software. The Indian handset factory is said to have purchased US$4.5 billion worth of handset software since 2006, which should have resulted in a payment of US$450 million to the government.
On the web: Business Line
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