Nokia asked to pay $383-million over tax evasion claims in India

Nokia’s budget Asha series may be winning over consumers by the droves in emerging markets, but now the manufacturer has got something other than market share to worry about in India: the courts. The income tax department has issued Nokia with a demand notice for some 20.8-billion rupees (US$ 383-million) for alleged tax evasion in the country.

While the company was originally asked to pay up a portion of the money this week, it was granted an interim stay by the Delhi High Court after it challenged the order, which means it doesn’t have to comply with the demands as yet. A notice issued by the court suggests that Nokia is being asked to pay for funds dating back to its 2006/2007 financial year, and questioned the time constraints it was asked to comply with — some of the money was asked for within five days of the filing.

In a statement to the Press Trust of India (quoted in the Economic Times), the company confirmed the proceedings and denied it had committed any wrongdoing, saying “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.”

According to the Times, the demands come after a probe into royalty payments made against supply of software by the company and an inspection Indian tax officials made of Nokia’s factory in Chennai in January this year.