WELCOME

INTERNATIONAL TAX DISPUTE -CASE STUDY OF NOKIA

PRESENTED BY ANJALY.B REG.NO:113311011 2ND YEAR (A&T) COMMERCE PONDICHERRY UNIVERSITY

Nokia has a successful story of change and innovation, adapting

to shifts in markets and technologies . From humble

beginning with one paper mill, the company participated in many sectors over time : cables, paper

product, tires, rubber boots, consumer and industrial

electronics .,plastics , chemicals, telecommunication infrastructure

and more......

INTRODUCTION

The NOKIA HOUSE-Head office located by The Gulf of Finland

HISTORY OF NOKIA

1865-BIRTH OF NOKIA Fredrik Idestam started first wood-pulp mill in southern Finland

1871-NAMED AS NOKIA Opened second mill on the banks of nokianvirta river

1960-Nokia first entered in to telecommunication equipment market.

1990-Made stratategic decision made to make telecommunication as core business

1967-MERGER Nokia AB and Finnish rubber works and Finnish cable works formally Merge to create Nokia Corporation . Nokia corporation have five business Rubber, Cable , Forestry , Electronics and Power Generation ..

1998-NOKIA BECOME WORLD LEADER IN MOBILE PHONE.

1990- Made a strategic decision to make telecommunication is the core business.

2007- NOKIA RECOGNIZED AS 5TH MOST VALUED BRAND IN THE WORLD Nokia siemens commence its operations. Nokia launched Ovi, its new internet service brand.

1994-Nokia tune is launched.

1997-Classic mobile games The Nokia 6110 is the first phone to feature Nokia’s snake game.

2002- First 3G PHONE Nokia launch its first 3G phone, The Nokia 6650

2011- Nokia joined the force of Microsoft to strengthen its position in the competitive smart phone market.

2013-Announcement of the sale of substantially all of Nokia’s devices & service to Microsoft.

2014-April-25th complete Microsoft transaction excluding plant in Chennai

HISTORY OF NOKIA IN INDIA

1995- Nokia began its operation. 1998- Nokia introduce its first Indian ringtone “Sare Jaham se

Achaa”

2000- Introduce its first phone in user menu in Hindi.

2002- The company introduce first camera phone.

2006- Nokia Finnish was the first firm to set up manufacturing units in Chennai.

2013- Tax dispute Nokia VS India.

NEWS ABOUT NOKIA TAX DISPUTE

Finland seeks negotiated settlement of Nokia tax dispute The Finnish government is seeking a

negotiated settlement to the Rs 2,000-crore tax dispute between the country’s telecom company Nokia and the Indian tax authorities.

(MAP) The Government of Finland has filed an

application with the Indian government to consider and settle the Rs 2,000 crore Nokia tax case under the Mutual Agreement Procedure

Taxmen freeze Nokia's India assets, may affect Microsoft deal

Indian authorities have frozen some of Nokia’s assets in a tax dispute, .it does not expect the move to delay the sale of its handset business to Microsoft Corp.

Nokia said the tax authorities froze all of its Indian assets, including its bank accounts and factories, to ensure that Nokia could pay its future tax bill, estimated to be hundreds of millions of dollars

India tax row won't affect Microsoft takeover, says Nokia

Finnish handset major Nokia has said the developments in the Rs 21,153 crore tax liability case in India is not expected to affect the “timing or closing” of its deal with software giant Microsoft. Last year in September, the US-based firm had announced it will acquire almost all of the devices and services business of Nokia for $7.2 billion.

Tax dispute: Nokia offers $369 million to unfreeze India assets Nokia has offered to pay 270 million

euros ($369 million) to Indian authorities to unfreeze assets in a tax dispute .It has been trying to unfreeze its Indian assets, including a Chennai factory, ahead of the sale of its mobile phone business to Microsoft.

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

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.

Supreme Court to hear Nokia plea in tax dispute

The Chennai plant is one of Nokia’s biggest phone-making factories and was seized by authorities because of tax claims. Nokia appealed the seizure and had been trying to end the dispute ahead of the sale of its mobile phone business to Microsoft in a $7.4 billion deal. Late last year, Delhi High Court had agreed to unfreeze Nokia India’s assets in view of its $ 7.2 billion global deal with Microsoft after the former agreed to pay Rs 2250 crore as interim payment in the tax caseover and above the Rs 700 crore tax payment ordered before.

CASE ON NOKIA- INDIAN TAX AUTHORITY

CASE ABOUT NOKIA INDIAN TAX AUTHORITY DISPUTE

. NOKIA’S DISPUTE BETWEEN INDIAN TAX AUTHORITY. Nokia has evaded tax in India amounting Rs.21000

crore including tax amount, interest and penalty.. Microsoft agreed to buy Nokia handset business for a $7.2

billion .. THE HC ORDERED FOR FREEZ ALL ASSETS AND BANK ACCOUNT HELD BY NOKIA. The Delhi high court in November 2013 had ordered a

freeze of Nokia assets and bank accounts in India against the complaint. Given by Indian tax authorities.

. Nokia offered to pay a minimum deposit of Rs.2250 crore out of 6500 crore.

. IT Department has told court that the offer is not acceptable.

.Nokia India had offered to put 2250 crore in an escrow account, and has already paid Rs.700 crore separately to free up the plant .It also

agreed to furnish a Rs.3500 crore bank guarantee as directed by Delhi high court..

THE Chennai factory is one of the nokia’s biggest phone making factory- photoBloomberg.

. Nokia’s another tax dispute with Thamil Nadu Government’s sales tax department.

. Nokia company has to pay Rs.2400 crore for non payment of VAT for the year 2009-10,2010-11, 2011-12.

. .Nokia ‘s Chennai plant was one of the company’s largest with nearly 7000 employees.

. The court ordered to deposit 10% of the tax amounting 240 crores with in eight weeks “as a precondition to review the assessment “.

. Nokia close the plant in Masan , Korea , which about 200 staff.

.Nokia had moved the Delhi HC seeking

lifting of stay on transfer of its asset and offered to pay minimum 2250 crore as tax.

. The court accepted an appeal by Nokia to release its local factory after it was seized by authorities in a tax dispute.

. Delhi high court asked the finnish company to deposit Rs.2250 crore in an escrow account as a consideration for lifting the freeze and transfer to the Microsoft.

. Nokia said due to tax dispute it would operate the Chennai factory as a contract manufacturing unit for Microsoft.

. Nokia transaction was complete with Microsoft excluding Chennai plant for $5.44 billion.

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