Tax dispute: Nokia asks Delhi HC to release seized Chennai factory

Nokia said on Thursday it has asked the Delhi High Court to help revoke a seizure of its Indian factory by the local tax authorities seeking to resolve the dispute ahead of the sale of its mobile phone business to Microsoft.

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Nokia said it did not expect the tax dispute to affect its 5.4 billion euros ($7.3 billion) deal with Microsoft but added that it was prepared for the possibility that the Chennai plant will not be transferred to the US company in time for the sale which is due to close in the first quarter of next year.

According to reports, Nokia has offered a compromise formula wherein it has agreed to pay part of the Rs 4,000 crore claimed by the tax authorities as an interim measure.

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Nokia can confirm it has gone to the Delhi High Court today to seek a revocation of the asset freeze requested by Indian tax authorities in September on its Indian factory assets. This is the latest step taken by the company as it seeks a fair resolution with tax officials over issues that first emerged in January, and Nokia is now pursuing this action as it prepares to sell substantially all of its Devices & Services business to Microsoft,Poonam Kaul, spokesperson for Nokia India, was quoted as saying by the Business Line.

Agencies