Nokia tax evasion issue: Final enquiry in Chennai today [India Business] [Times of India]
(Times of India Via Acquire Media NewsEdge) CHENNAI: The final enquiry in the Nokia tax evasion case is expected to take place in Chennai on Thursday. Top officials of the Finnish handset maker will be questioned and their statements recorded, said sources in the Income Tax Department.
A senior income-tax official, who wished anonymity, told ET, "Around 10 top officials will be appearing for enquiry." A final report will be prepared and sent to Delhi, the source said.
"Further action would be taken from Delhi and we will be sending a detailed statement to Delhi team," noted the official. "As of now we will collect Rs 3,000 core (somewhere around that); this is for the primary tax evasion. But the final amount will be known in a day or two."
He said that Nokia could approach the courts if it disagreed with the findings. "If Nokia is correct the money would be refunded to them."
Earlier this month the Income-Tax Department raided the factory and offices of Finnish company's Indian subsidiary in what it called a 'survey' operation. Covered under this operation were its factory in Sriperumbudur, near Chennai, and its offices in Gurgaon, Haryana.
The department has alleged that the company changed its accounting policy and was also in the process of re-organising the existing business model to bypass certain direct and indirect tax liabilities. The department has also said that Nokia has not made tax payment for software supplies.
Nokia's Chennai plant was established in 2006. The facility has an employee base of 8,000, of which more than 70% are women. Chennai is also the largest plant for Nokia in terms of volumes.
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