The Indian Tax Authorities have frozen some of Nokia’s India assets last week following a tax dispute. However, the Finnish handset maker on Monday has announced that it has regained access to its Indian bank accounts and that the dispute will not in any manner affect its deal with Microsoft Corporation.
Nokia said that the Indian tax authorities froze some of its Indian assets, including its factories and bank accounts, last Wednesday to ensure that the handset maker pays its income tax bill, estimated to be around Rs. 2,080 crore (US $332 million).
Nokia appealed against Indian tax authorities’ actions in the Delhi High Court which on Thursday ordered the company’s Indian bank accounts to be unfrozen to allow any transfer or withdrawal of funds.
Some of the company’s fixed assets including buildings and factories are still frozen, said an executive from Nokia, indicating that without approval from the tax authorities the company cannot transfer the ownership of its fixed Indian assets.
In a statement released on Monday, Nokia said “We are now working closely with the tax authorities,” and “Nokia has sufficient assets in India to meet its tax obligations.” The company however declined to give any details of its assets.
Nokia’s spokesperson confirmed that the dispute and the freezing of the assets would not affect its 5.44 billion Euros ($7.2 billion) deal with Microsoft, which is expected to get close in 2014’s first quarter, subject to shareholder’s and regulator’s approval.
When asked to comment about the assets freeze, a spokesperson from Nokia replied saying that “This does not change our earlier expectation that the transaction with Microsoft will close in Q1 2014”.
