Nokia News 2013: Finnish Manufacturer Faces Tax Evasion Charges In India, Threatens To Pull Out Products

For mobile manufacturer Nokia, every step is crucial in order to level the competition against its Android and iOS counterparts. And one golden opportunity is to seize emerging markets such as India, China, and South America. 

But that goal may just be harded to achieve for the Finnish company now that it faces tax evasion charges from the Indian government. 

In a report by BGR, the manufacturer reportedly failed to pay $542 million in taxes to the Indian government. As a result, the authorities took action and raided a Nokia factory to the dismay of Nokia executives. 

In a statement released by Nokia, it directly said "India has suddenly become the least favourable market." The letter also highlighted the political issues which may be causing the problem. "The political risk of operating in India [is] suddenly substantially higher and may inevitably influence future decisions to develop one's operations in India."

Portions of the letter were published in the Indian daily The Indian Express and was released Friday. Nokia's letter also stated that it may be better to stop the operations in India, and just focus on China as one of its key targets in the region. 

As results of the raid, Nokia's tax bill is now down to about 20 million rupees, or approximately $316 million. 

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