Nokia Factory in India Raided After Allegations of $543 Million in Unpaid Taxes

| January 8, 2013 | 33 Replies

Earlier today Indian authorties “raided” the Nokia factory in Chennai India with claims of 30 billion Ruppes/ 543 Million dollars; worth of tax evasion charges. Although the factory was not shut down it’s unclear how this will affect the productivity of the factory.

In response to the raid Nokia replied:

Earlier today, tax officials visited Nokia’s manufacturing unit in Chennai. Nokia is fully cooperating to ensure they get the necessary information to help in their inquiry.


As a global company, Nokia consistently fields a large and steady number of tax queries, audits and assessments. Nokia’s commitment to being a good corporate citizen is firm and unwavering: we always observe applicable laws and rulings in the countries where we operate. This has been a core principle of our operations in India, where Nokia has been present since 1995.”

Hopefully this was all a big misunderstanding; cause it would sure suck if Nokia slid back into the red this quarter (after such promising sales) due to tax issues.


Via/ Source

Thanks to everyone who sent this in



Category: Maemo, MeeGo, Nokia, Symbian, Windows Phone

About the Author ()

Hey, my name's Ali- Currently a fifth (and final) year Dental Student from Chicago; studying in Jordan. I love all sorts of gadgets almost as much as I love my cookies! Be sure to follow my Twitter handle @AliQudsi and Subcribe to my Youtube for the latest videos - no pressure. Thanks.
  • rustyknight17

    Hopefully so ! OTOH , wouldn`t surprise me if this is one of Elop`s strategies for saving money …

    • swain

      Hope not. I too hate WP as much as any Symbian lover out there but certainly we all love the company called “NOKIA”. Hope they come out clean.

    • Viipottaja

      Oh please.

    • incognito

      Not paying taxes is saving money, if you don’t get caught, tho.

      I wouldn’t be surprised that they pulled some shenanigans to have rosier Q4 results, plenty of companies juggle with taxes and debts to show better stats. Governments, especially crooked ones, are doing that as well, but they have the police so…

      • ZiPA

        I know that it is quite common practice to downplay your financials to get away with less tax, but why on earth would a company artificially inflate its earnings to pay more taxes? You are not making any sense.

        • rustyknight17

          IDK , maybe to have more money in the short term because they`re in dire straits financially ? Nahhhhhhh ….
          Paying more taxes is in the long term , Nokia`s proably hoping the WP8 Lumias continue to do well so they can pay off the taxes at a later date .
          That`s assuming , of course , that this isn`t simply a ploy by the corrupt Indian government to drum up additional funds , which might backfire on them …

    • Capedonut

      Probably local authorities have been attracting multinational companies by promising low tax rates and now the national authorities are stepping in to get their fair share ?

  • swain

    Unbelievable. Nokia’s India operations will be in deep trouble if this turns out to be true. No comments till things are clear.

  • Zizou

    I believe nothings gonna happen to them.. If it was other companies like google or apple then maybe..

  • Ujwal Soni

    As an Indian, I can attest to the fact that doing business in India is akin to having committed a crime.
    The government is a bunch of incompetent nincompoops. Only interested in collecting bribes and harassing people.
    The only people who make money in this country are those hand-in-glove with the govt or those with an exceptionally profitable business, who have something left over after the bribes.

    Govt officials are free to pursue personal vendettas and they often do. Most likely, Nokia refused to offer bribes to key officials and they’re being punished for it.

    For a Rs 3000 crore evasion, Nokia would have had to earn a profit of approx 9000 crores in India alone…that’s about USD 2 billion..

    • Ujwal Soni

      Actually around 1.6 billion..

    • Anders81

      Would it make a difference if Asha’s were smart phones instead of feature phones, I mean with taxing imports exports etc. ?

      • Ujwal Soni

        I don’t think there’s any provision for separate taxation of smartphones vis-a-vis feature phones. In any case, this is not a Customs related raid..

        I suspect it will be related to transfer pricing (income tax), which means that the Govt of Finland could get involved..

    • “Doing business in India is akin to having committed a crime.”

      Thats a Fact.

      I`m a Indian too & i see this everyday

    • Pat

      Exactly what I thought.

    • Ravi Kiran

      India wants investments from others, so I don’t think they will harass MNCs for some bribes, especially big players who can take care of themselves. Its not as if law and order is completely absent in India. If nokia has done nothing wrong, they can always take recourse to courts. Vodafone recently won a case against the Government of India in the Supreme Court for $2 billion.

  • pathetic

    Hahahahahahhahahahahhahahahahahahahahahahahahahahahahahahahhahahahahahahahhahahahahhahahahahahahhahahah thanks elop

    • Viipottaja

      Every day, you live up to your name! Hats off for that!



      • pathetic

        you are complete idiots , never see beyond of their nose, have the mind of a cockroach . You have to ask these questions , is nokia entering to the Indian market ? answer: No! Is this the first time they sell a phone there? Answer : No, Nokia knows the hindu law , is not new in this country.
        do not blame the Indian government is fault of nokia , not be an as*sholes !

        • Peter

          So much cancer typed from your fingers.

  • BellGo

    Hmm. This would certainly not help Nokia at all..

    I’m guessing that Nokia won’t pay that much, but they don’t have a lot of money to waste right now, so they’d still feel it if the sum will turn out to be, say 300m.

  • Bob Shaw

    The rules and regulations in India are very opaque and complex. It is deliberately kept that way so that corrupt government officials and corrupt politicians can harass and extract money from citizens and corporations.

  • rustyknight17

    Hmmm , remind me never to live in India lol

  • lolapalooza

    its easy to blame a government thats not very adept at doing its job but what comments im reading up here like the ones about corruption etc are probably only appkicable at the individual level. Bribes etc are more common at the local levels but for a case like this the biggest culprit is probably the lack of a standardized taxation and policy to follow, by tHe MNC As well as the government..

    First vodafone, which the government asks $11 Billion.. Blamed squarely on the fact ther is NO standard policy.. And now nokia.. Both of whom whill probably escape unscathed..

  • exsanguine

    This is a witch hunt, pure and simple.

    As one Indian official stated in the Reuters press release: “Indian tax officials are on the hunt to fill gaps in their budget so they are looking at anyone with deep pockets to attack”

    • Bob Shaw

      That appears to be more likely the case. The government spending is out of control due to corruption and the patronage system and the deficit is huge. They are hunting for more revenues to fill the gap and targeting anyone they can lay their hands on.

  • Pierre Lavoux

    Or perhaps another “burning memo” is coming. Perhaps Nokia is going to concentrate even more on selling Windows in USA and does not need any factory in India anymore? Under mercy-full leadership of Mr Elop the Finnish one has been closed – then perhaps they are going to close the Indian one also? And Indian gov is just afraid of taxes when it will be closed? Why to pay when we are to leave? Those are only suppositions, nothing more.

    • rustyknight17

      Unlikely , since India`s a major market for Nokia .