Friday, February 14, 2014

Nokia, Microsoft deal to close despite India tax dispute

The sell-off of Nokia's phone unit to Microsoft is still expected to go ahead by the first-quarter of this year, despite rumblings that Indian authorities could scupper the deal.

The reason? Nokia has a $340 million tax bill to pay in the country, which the phone maker (soon to be Microsoft) holds dear to its heart as a crucial emerging market that generates the company billions in revenue each quarter.
To make matters worse, that figure could ultimately rise to as much as $3.4 billion.
Earlier this week, Nokia appealed a Delhi High Court ruling that stated it owed the back tax due to the improper exemption on software exports. While rumors suggested this alleged accounting snafu may hold back Microsoft buying Nokia's phone-making unit for $7.2 billion, the Finnish firm rejected such claims on Friday.

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