Finnish mobile handset maker Nokia, which had a dispute with Indian tax authorities, Monday said the Delhi High Court ruled in favour of the company last week. The ruling unfroze Nokia’s bank accounts but its immovable assets, including its manufacturing plant, remain frozen to ensure the company had enough funds to pay its tax liabilities, which Nokia disputes, the WSJ reports.
“We are now working closely with the tax authorities to ensure that the parties will find a comprehensive solution to the remaining open issues, and discussions have been constructive,” Nokia said in a statement. “Contrary to speculation in the media, Nokia has sufficient assets in India to meet its tax obligations, details of which will be shared with the tax authorities to allay any concerns they may have. Given that negotiations are ongoing, Nokia will not comment further on this matter,” it added.
Nokia had earlier threatened to exit manufacturing in India in a letter written to the finance ministry but the company insisted the talks have been productive.
The frozen assets could possibly delay the process of Nokia’s sale of its handset business to Microsoft, if these are not resolved in time. Nokia and Microsoft expect the deal to close in the first quarter of next year after Nokia’s shareholders approve the acquisition and deal is cleared in a few countries.
With agency inputs.