Nokia Says Indian Court Grants Stay on Unpaid-Tax Demand
Stock Chart for Nokia OYJ (NOK1V)
Nokia Oyj (NOK1V), the Finnish mobile-phone maker struggling with falling sales and mounting losses at its handset unit, said the Delhi High Court granted an interim stay on an Indian claim of unpaid taxes.
“Nokia confirms it has received an order from Indian tax officials,” Brett Young, a Nokia spokesman, said in an e-mailed response to questions today. “Nokia reiterates its position that it is in full compliance with local laws as well as the bilaterally negotiated tax treaty between the governments of India and Finland, and will defend itself vigorously.”
India’s government ordered Espoo, Finland-based Nokia to pay 20 billion rupees ($368 million) in missing taxes, Bloomberg TV India reported today, citing unidentified people familiar with the situation. Nokia filed letters of complaint in February against authorities’ investigation, which included entering factories and computer systems. Young didn’t specify a figure today in India’s demand.
Nokia rose as much as 1.5 percent to 2.58 euros and was trading up 1.1 percent at 5:17 p.m. in Helsinki. That pared the stock’s decline this year to 12 percent.
Arto Nummela will lead Nokia’s India, Middle East and Africa operations when current head Shiv Shivakumar leaves at the end of June, Nokia said today in an e-mailed statement. Nummela is currently in charge of Nokia’s smart-phone business in the Americas, according to the statement.
Nokia also announced that Florian Seiche will join the company as head of European sales June 15. He has led HTC Corp (2498)’s Europe, Middle East and Africa operations since 2010.
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