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Microsoft-Nokia deal complicated with recent $571 million ruling from Indian court

Indian Tax

There are a few hurdles left for Microsoft to clear they can acquire Nokia’s handset unit. Recently we’ve seen some complaints from Korean companies and interest groups over potential patent abuse that could result from the deal. One little tangle in Microsoft and Nokia’s plans revolves around a manufacturing plant in Chennai, India currently involved in a legal battle with the Indian government. The plant is to be transferred to Microsoft as part of the $7.3 billion USD deal to acquire Nokia’s phone business. However, that manufacturing plant may now be shut down and not transferred to Microsoft. 

On Friday, India’s Supreme Court ruled that Nokia must deposit $571 million into an escrow account before the Chennai factory can be transferred to Microsoft. This is an increase from the $339 million a lower court asked Nokia to set aside last month.

Nokia’s tax troubles in India started in January 2013 when Indian tax authorities raided the company’s offices and facilities in Chennai. Indian tax officials say that Nokia allegedly owed $545 million in back taxes. Those back taxes are allegedly on income from downloads on phones made in India. Nokia didn’t want to pay those taxes because of a bilateral tax treaty between India and Finland.

Nokia was previously cleared to transfer the factory to Microsoft. At the time, the Dehli High Court ruled that Nokia could transfer the Chennai factory to Microsoft if they set aside $339 million into an escrow account for those back taxes. Nokia agreed, but continued to challenge the ruling.

That challenge came to an end on Friday when the Supreme Court ruled that Nokia would need to put $571 into an escrow account before the factory could be transferred to Microsoft. Now, Nokia is reconsidering its options surrounding the manufacturing plant.

The Chennai plant employs over 8,000 people and is by far one of Nokia’s largest factories for making phones. Those 8,000 people may be out of a job when the dust settles from this Indian tax debacle. The Indian tax courts are currently filled with companies like IBM, Vodafone, BMW and Royal Dutch Shell fighting similar back tax claims.

A few possible outcomes now exist for Nokia. If they don’t transfer the plant to Microsoft, Nokia could run the plant as a contractor on behalf of Microsoft. Though Nokia’s laywers say it would be temporary and wouldn’t last long. Nokia could also shut the plant down. Of course, that means 8,000 people in Chennai are now jobless, Microsoft is left without a major phone manufacturing site and Nokia ends up with less money from the deal.

Microsoft and Nokia are working hard to close the deal within the month. However, this ruling from the Indian Supreme Court might be a minor setback.

Source: Reuters Via: Quartz

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Reader comments

Microsoft-Nokia deal complicated with recent $571 million ruling from Indian court

386 Comments

I'm all for paying taxes, except in this case their was a deal between Finland and India that took care of those taxes under their double taxation avoidance agreement, and India is basically going back on that deal.

Really? India is a democratic country. Courts are not ruled by kings/queens here...there are laws, there are lawyers from both the sides in this case....whoever can prove their side, wins.

When a court is corrupt, the side that the corruption is in favor of wins, regardless of the law or evidence.

wow. very nice. court is corrupt? prove it. This is not a local court we talking about, do you have copy of the hearing? prove it.

There may be corruption but that's during criminal trials involving rich and famous..
I think there is this gray area in the treaty between India and Finland that leads different interpretations. And ofcourse Nokia interprets it as no tax and India interprets it with a $500miltax

Yeah, I see no reason for corruption here. Then again, multiple countries have these agreements, and Finland has them with multiple countries as well, so far India is the only one where there is trouble. Now Nokia needs to negotiate with Finnish and Indian officials, and get the paid tax-money to go to the right country.

Courts are corrupt in cases involving 2 parties none of which is a government... Govt doesnt pay bribe to judges !! Don't malign india for no reason. Its fine, companies do evade taxes at times....
P.s. Just for info of our us friends, i dont suppose our judges have anything to do with political parties...

Before you conclude something it would have been good if you had tried to research what the case was about, see below, in one of my comments I have mentioned the summary of the case.

If you say Indian Judicial system is corrupt and well known that means Nokia can easy bribe the judges and win the case..isn't it ??

btw India ranks 94th in the list of corrput countries in the world out of some 177 countries, and all sorts of negative things are "well known" because the media in this part of the world is dam powerful.

You're Indian. Can't blame you for being on the defensive. But what wapoz commented is true. India is one of the Asian countries that has some kind of corruption in every level of its society.

but not at the level people think it is

we live here , we know better

its not a land of snake charmers or something neither does everyone only say namaste

its the most underrated and exaggerated country

ive travelled nearly every popular country and they all have corruption to some extent just that the corruption in some countries isnt as visible as ours

plus supreme court and a few courts a bit lower have zero corruption , too much security

Supreme Courts do not have zero corruption in India. They are less corrupt than other courts. That said, I don't know if this issue is about corruption or about extortion. India has pretty low personal income tax rates and a huge majority of Indians do not file or pay taxes; among the ones that do, only those in the service sector actually pay the right amount. The government makes money mainly by taxing companies, specifically multinational ones that can be bullied by listing arcane laws. 

The funny thing about corruption, is that it happens in every country.  The USA is no different from India in this regard.  The only difference is that the USA pretends that it is not corrupt.  (And no, I don't live in India.  I live in Canada)

Ow come on. Every court has chances to be corrupted. It's human nature. Look. If they take the drastic measure and close down the factory (and take the risk of Microsoft loosing one of big factory but less payment to Nokia, and Nokia themselves take less payment since they don't sell that factory), India will have to think about those unemployment issue. Sudden 8000 unemployed is not small thing to look away from.

How can a freaking SUPREME court be corrupt? That is totally uneducated statement. Are you saying the supreme court judges are corrupt? You do realise that this is the point just below Presidential ruling for India? So everyone in the administration is corrupt? That's bullshit.

Money corrupts, and this sounds like a judge, or even the country, wanting more money from either Microsoft or Nokia...

Even the U.S. supreme court is corrupted. Everyone knows how the judges will rule. Those appointed by repubs vote one way, those appointed by Dems the other + one swing vote. Could it be any more clear that rulings are made based on political affiliation, rather than what would be just or in the spirit of the law? Just the citizens united ruling has screwed up the U.S. political system beyond what most thought was possible. No, supreme courts are just as corruptable as any other court.

The US Supreme Court is political, of course. These people were appointed by various presidents. The difference is that the background checks conducted on judges and cabinet members is pretty stringent and so are the disclosure requirements. It's not easy to get away with taking money or gifts. Also, the press in the US is much more powerful. Notice how quickly Bob Mcdonnell was charged after he left office? Something like Watergate would be a temporary embarrassment for the Indian PM, but got the President impeached in the US.

Political - yes. Decisions based on their perception of the morals of the day and by their read of previous decisions - yes. Occasionally corrupted by money and influence - possible but not as likely. And there are a few on the US court currently who fail to recuse themselves where they have previously stated or involved positions (by themselves or their wives) - inexcusable!. Going back to the Indian Court decision - it doesn't seem like "corruption" so much as a financially biased decision without regard for the entire consequence for the decision, especially in a world of multinational companies who are themselves financially driven.

supreme court is the level just before the president , if there is even a hint of corruption,the people involved get screwed immediately so yeah no chance of corruption there

Why you so mad? Are you from India or what? Chill out..it's just a third world country, that wants some money after 8000 people will lose their jobs.
Who cares if they are corrupted or not, that is not the point.

If this is indeed unfair or corrupt in some way, then neither Microsoft nor Nokia will want to do business there in the future and will simply pull out.  If however Microsoft and/or Nokia makes an effort to settle this and continue to do business in India,then they must not fear the business/political climate there.

Agree. These idiots don't even bother knowing some basic facts about a nation before smoking off that produces nothing but offensive and racism comments... Such retards, never believed I would meet them in a decent place of tech-talks like WPC.

lol nigga, just guess where you're also from for us... just who I should believe, a thousand internet guys saying india is hopelessly corrupt or one internet guy claiming otherwise...

I get thousands of news about Aliens detected in US over the internet as if they have a special interest there, so should I believe that or judge by some common sense that the largest search engine belongs to US? And stop saying India corrupt, it is the government and political parties but not in this case. Every nation's government is corrupt, only the degree of corruption varies. If you can't agree then at least comment some sense.

And where's your comment?????
Your reply is not even a reply to my comment.
The article in the link is probably written by another inhuman racist like you. Every nation has their dark sides, no one is perfect. Wisdom lies in being optimistic and see the brighter side. Tell me the country you belong to and see what I can discover from the junk...

That's an incredibly stupid thing to say. India is corrupt, yes. So are most other countries in the region. Well, guess what? None of these multinationals went and setup base in india not knowing that. In fact, the whole reason is to exploit low wages etc. in these developing countries. They're playing in the same filth and tend to be just as corrupt as India and other countries. We don't know the entire story here.

U from Brazzers or what?I get serious when someone says things abt something which he doesn't know.Agree India is deeply corrupted but so is every other country.And the world already where the crazy maniac criminals live.U call ur country better and civilized than India.If yes FCK U N UR COUNTRY.Just look at the present situation of ur cntry.Crime rates are increasing day by day.We are better without your bullshit.It is because of ur western culture that India is getting worse.Sorry if i hurt ur citizens but i wont keep quiet if somebody abuses my country.Jai Hind.

Oh come on. Even the Indians overstay their student visas and never leave the USA. Corrupt even as a child. They also buy blankets at Walmart when they have a visitor then return it the next day. How is that honest?

Lets  calm down everyone. I've lived in America the beautiful for 40 years. Thanks to my school St. Vincent's High & Technical, Asansol, India. After watching many western movies at the Durand Cinema, I was determined to get out of the corrupt country. Especially when I tried to get my nephews birth certificate from the municipal office and the clerk wanted a bribe. My father said its not his fault, he has a family and dosent make enough money. So, the problem is over population, women not educated which should be the first priority. I can go on......but just to tell the brothers online, if you come to America and join the celebration, you will never go back. Guaranteed.

yeah thats why i love the way they spy on me and stuff

i mean wow ur also indian but such a naive comment,come on ,

matru bhoomi ko aap kaise thukra sakte ho jab yeh log uske baree mein galat baat karte hai

aapko sharm aani chahiye ki aap galat logo ki taareef kar rahe hai

India is not crap and many of us are not insulting it. Your views on its politics are fairly ignorant though. It happens even here in the US.

Kind of like ruling Formula One is entertainment only and not a sport which effectively killed the Indian GP all over a tax grab. So you're right, no corruption at all. Nokia is not alone is this scheme.

India tried to tax retrospecively.  In other words they lied about their tax policies and then changed the rules so that revenues from previous years were now subject to higher taxes.  Many, many foreign companies were caught in this net.

Frankly, this will drive a LOT of business out of India, specially Chennai, which is one of the most corrupt places I've ever seen.  And I live in Beijing.

I'm sure by now you'll have heard the joke doing the rounds all over Asia:  Why are there so many Indians in Singapore?  To make the Chinese look good. 

India is now the most corrupt nation in Asia.

Have you seen the details of the treaty? 

OR just basing your argument based on what is reported on tech blogs or news sites?

Except that there is a tax agreement between Finland and India that Nokia were abiding by. So they were doing what they believed to be right.

Guys stop abusing the Indian judicial system without knowing the fact. Legal battle is a lengthy process in India. Nokia wanted to complete the Microsoft deal as soon as possible. So the court has asked Nokia to wait till the final judgment or deposit $571M in an escrow account before completing the deal. If Nokia wins the case, it will get back its money, if not Govt will. I know you all love Nokia (me too), but that doesn't mean you can abuse something without knowing the facts.

I have a feeling that omkar n's statement is an accurate representation of what is happening.

 

Omkar is Correct. It is an interim arrangement till the case is finally closed. People who are calling the judiciary corrupt are ignorant and know nothing about law and legal process. People should refrain from making derogatory comments on topics they have no knowledge of . Pity these morons.

Maybe not corrupt but completely insane. Ignorant you say. What about those accepting that there's rape going on every day. I call that ignorant, cavemanlike, lowlife men with NO HONOR!!

683,000 adult American women un U.S.A. are forcibly raped each year. This equals 56,916 per month; 1,871 per day; 78 per hour; and 1.3 per minute. Now what? Where's HONOUR? And once again I would agree with Karthik, don't dig into things you know nothing about... BTW rape cases has nothing to do in this case...

exactly atleast in our country everythings reported unlike his 'perfect' saintly country where they treat women with 'respect

 

right thats why we have lesser divorce rates and thats why we dont have to deal with 7-8 exes

look at ur own country first

True. We hardly hear of 2nd wife or 2nd husband here. Perhaps only one in thousands of marriages or so...But in his country, changing wives and husbands are like changing clothes. Everytime they quarrel, get bored of or just because can't enjoy enough liberty....

His country... Don't talk if you know nothing about it ;)
I'm not living in the US.
BTW, a man committing rape have no honor whatever country he lives in.
It's the insane verdict's in India I'm referring to... If you support that there's got to be something wrong with you. And why should we believe that the rest of court system is any different?

umm are u retarded?? READ before u post bull

rapists are a55holes but that has nothing to do with this and the rates of rape are equal in ur country too so stfu 

Have u heard of taxes?? u pay them u see

Man u got me wrong. It was against the honour and respect I meant, not for. Read above comment again...

Why won't you believe in the first place??? You don't live in India and don't have any idea how long law procedure takes here (which obviously is something even I would stand against its the reality) Nokia was in hurry so encountering this problem. Other makers had met the same fate before too (like Vodafone IN) but it was solved pretty soon. If you go deeper in the matter, you'll realize Nokia too had a major fault this time.

exactly its so sad to see racist idiots try and judge our country while sitiing behind a computer and reading bs on the internet

Karthik
Racist idiots? Are you mentally disabled? Any court in any country that's not taking proper and right action to protect the people are not worthy of respect.
At least Gautam makes sense, you don't. Take off your blindfolds.
And... I don't care if the color of someone's skin is black, white, brown, yellow or whatever.
It's what's inside that matters to me, not outside looks.

have u even read ur own comments??? ur mentally disabled not me , ur the one being racist not me, ur following stereotypes not me

as for ur remark- "Any court in any country that's not taking proper and right action to protect the people are not worthy of respect." who are u to judge?? u dont even live here , its a totally different circumstance get ur facts right and learn to READ and stop being racist READ ur own comment and tell me u dont find it racist and misleading 

get a life and get ur facts right or stop using the internet and dont mislead and talk bs

guess which country is flooded with immigrants from the place ranked in second... how does it feels to live in a rapist-exporting superpower?

Guess which country was founded by immigrants and stole the country from the local people (hint-ur country)
As for the rapist thing , ur women sleep with at least 20-30 ppl in their lifetime and not all Indians do that only 1-2 in a million

Bro are you blind or mentally disabled? Or just born a jerk? How does it feel to be in a rapist importing country with highest degree of rapes per day already done by their own citizens? We don't have those pubs and clubs for people who look "civilised" and "decent" having another face during nights. Whatever is done here,is reported. Unlike yours where hardly any reports are made by the traumatized victims. And for the feeling part, yes it does feel proud to live in the country with best culture (you may not know what it is), innovation and amongst one of the ultimate IT power in tech world.

Of course its bull shit and at the end of it only the 8000 poor workers will gets screwed by their own goverment when the plant is shut down.

WTF is "back taxes allegedly on income from downloads on phones made in India" that is the biggest pile of made up crap I have heard. If I was Nokia I would tell them to fuck off with these bullshit claims.

 

All of those want the deal not to happen, what would you think of your beloved Nokia if they shut the plant down leaving 8,000 people jobless? Or are you guys so heartless that it doesn't matter?

Do you want the harsh truth? The one I bet many will be too coward to speak? Here it is: I couldn't care less. Those 8000 jobs were created at the expenses of European workers losing their jobs just because in India Nokia could pay less for the work. I'm sorry if I have no sympathy for it. Even less when they might lose the jobs because of their own Government. "cheap always comes at a cost".

(post scriptum - please, spare me the hypocritical self-righteous comments...I have no patience for false moralism)

The truth bothers your hypocritical little mind doesn't it? Try to be a little bit self-righteous.

This comment doesn't even make any sense as a reply to mine, you are definitely insane.
I view Europeans and Indians alike as humans. You don't deserve these jobs any more than Indians do. It sucks when humans lose their jobs. Now, continue with your own self-righteousness behind a computer in your comfortable home.

There's little point in explaining things to someone who is determined to not understand them. Yes, Indians are people just like Europeans. And precisely because of that, because they are EQUALS, they are subject to the same problems as others. Europeans lost their jobs when factories moved to India. Now Indians lose their jobs in favour of other people elsewhere. It's because they are equals that they don't deserve a special pity for this. Even less when it's their government that is breaking treaties to try to extort money from foreign companies.

And where did I say that it didn't suck when Europeans lost their jobs? It sucked then, it sucks now. Don't try to wave around this false dichotomy. These workers obtained jobs that cost others their jobs, but how is that not applicable in a multitude of scenarios? If someone works hard at their job and replaces their boss, does that mean I am not allowed to care if they lose their job? These people have done no wrong, they are in their situation because of external circumstances – actions of their government and Nokia.

Oh, and Mr Lawyer On The Internet? Go look up a dictionary sometime, since you clearly don't understand words like hypocritical and self-righteous. No pressure, big words are for grown-ups!

Those people who lost their job in Europe (and anywhere) also because of external circumstances. So what's the point?

Nowhere did I say that it was exclusive to the Indian workers. The point is that it is insane to attribute external circumstances to the workers, which is what you are doing when you are discrediting the sympathy of others. Try to actually comprehend arguments in future, instead of failing to nitpick.

Goodness gracious it was a freaking attention seeking comment to stir things up hahahah you guys are so ready to call someone out! Its too cute to watch

Looks like MicrosoftWinPho has some sorta special enmity with India. Maybe doing a degree in Raciology and India is their current topic LMAO!

Insane? Is the world insane then? We're on a large rock that is just circling a large ball of fire, and what do we do? Put an irregular price on everything we can possibly think of. One worker costs more than another one, just because of location of that same rock I mentioned earlier. Due to that though, a "treaty" if you may, was forged between Finland and India to subsidize the taxes to make more jobs. Nice gesture, but it looks like India is pulling out, not on the better-half of the workers' jobs, but because they want more money. The real ironic part is, if Nokia does close the plant down, well, doesn't that mean they get less money due to 8,000 people not being able to pay their own taxes? I'm not sure how it is over there, but here in the States, we can get money for something like this from the government itself... Can I get a glass of irony?

Why are you talking about the Indian government and Nokia? I am talking about how insane it is to dismiss sympathy towards workers losing their jobs because of some screwed up narrative you have built in your head. And no, a severance package or welfare is not the same as having a job. I am not Indian nor do I live in India.

Yeah we get that. It just that this sympathy does not need to be special to the point we need to express that. It happens when it happens. Sympathy? Sure. But that not what we discussed here at the first place.

Q: Or are you guys so heartless that it doesn't matter?
A: I couldn't care less.

This is the exchange that started this comment thread. It pretty clear from the answer above that DJCBS believes they don't deserve any sympathy, and he goes on to consider any such feelings to be either "false moralism" or "special pity".

I couldn't care less for what self-righteous people and fanactic-fanboys call me, as you may imagine. Specially when they never ever present counter arguments. Just insults. ;)

judiciary is independant in India n keep ur bs with urself, if battery of best lawyers is not able convince the court then it means nokia were at fault. if u had studied the case u wud hv known whats the issue abt, but then its all bit technical, u wont understand anyways

I'm a lawyer my friend. I very very likely understand this case much better than you. Specially judging by your poor command of the English language.
Division of powers doesn't really work the way you think it does, you know? Next thing you're going to tell me North Korean courts are independent. Not even American courts are. There's always politics behind everything, specially the judicial systems. Be it in India, Europe or America. You'll learn that one day if you bother to actually study law and political science ;)

LOL, so what you have written is english? I wont stoop to ur level n indulge in personal attack.
 

understand this then, or if you are a lawyer better go n fight the case for Nokia or advise the counsel of Nokia since they seem to be struggling to convince the courts.

"Section 115A of the Income-tax Act, 1961 obliges an Indian resident to deduct a 10 per cent tax from royalty payments to a foreign company. Nokia India has been paying Nokia Finland royalty for software downloaded into the handsets made in India. Nokia India is admittedly a resident of India.

Unlike in case of import of goods, including machinery, where the Indian tax authorities have to establish a business connection in India in order to be able to tax a foreign company, there is no such onus as far as import of technology, borne out by payment of royalty or fees for technical services, are concerned.

The very fact that the royalty is related to use of technology for manufacturing goods or services in India for earning income in India is sufficient to make the foreign company cough up tax in India --- no matter where it is located or where the technology was passed on to the Indian resident. It is immaterial how the technology, the handset software, was imported.

The Indo-Finnish double taxation avoidance agreement does not help Nokia either. It also concedes that a 10 per cent withholding tax can be deducted. The only point of contention is whether Nokia Finland passed on the technology in India.

But then this is immaterial, given the overarching provision in the Indian law that presumes a foreigner’s connection with India as far as royalty earnings are concerned.

Nokia cannot invoke the mutual agreement procedure to sort out the dispute, because that procedure is available only for business income of a Finnish resident in India, whereas the present dispute is about royalty.
but if, for such downloading, royalty is to be paid, the Indian government will demand its share. How can the Indian government put its shovels into what apparently is foreign income?

To this the Indian tax laws’ answer is the connection with India ---- Indian companies are downloading the software and thereby making their products marketable and enhancing their profits, aren’t they? And this stance of the Indian tax law derives sustenance from the UN model which swears by the source rule of taxation. India says the source of the MNC’s income is in India."

@DJCBS ur a lawyer of some other country where the laws are totally different so dont talk crap 

if ur that qualified why dont u come to india and fight for them and then talk

dont get me wrong i love my country , i love nokia and microsoft and i hate corruption but when someone talks bs i must correct it

Absolutely, I agree with you. But this is called business and every company works in a direction to gain more profit. "cheap always comes at a cost"??? really??? Indian Govt is right here, why should they give tax benefit to Nokia???? How are they different then other companies who paying their taxes on time????

Read the article????? Why? Is Sam Sabri Nokia's lawyer or the article is publishing the hearing or the article is mentioning the actual link that describes the fin-india deal??? You go and check your facts first.

"Why should India give a Tax benefit to Nokia"... hmmm I am not really sure if you read the god damn article. It states clearly India and Finland agreed on a tax treaty. Taxes are payed bi-anually for finnish companies. You want no tax benefits for companies? Do not sign an agreement. End of story.

Why you guys are mentioning what article states? Does the author of this article has court's ruling? Does the author is Nokia's legal representative? Does Nokia is saying that they are getting the illegal treatment in India? Only morons like you can believe on these kind of articles and make conclusion that a company not paying taxes is right... they transferring the ownership and it is no brainer that all past dues need to be clear before this can be happen. You can keep reading these articles BUT Indian Govt is correct and every company need to pay taxes they owe.

So not paying taxes is the right thing to do? No multi billion dollar company has any ethical grounds or morality to talk about if they want to make money by not paying what they owe. They agreed on paying relevant taxes at the start of business and that is what they must do and keep those 8000 people in jobs too. If Nokia is as good a company as your comments have tried to tell over few months in pas, they will pay what they owe and close the deal.

This is not a question of not paying taxes. It's a question of the Indian Government breaking unilaterally international treaties with countries (in this case with Finland) and trying to take unlawfully money from those companies.
Neither Nokia nor any other company should pay taxes that aren't due. If the Indian government insists on breaking international treaties - which they can - then they should also accept that the companies start refusing to obey posterior laws they come up with and eventually close factories. If the Indian government wants the money, they can take over the factory. But they can't force neither Nokia nor any other company to pay every single new tax they create to suck money from them after breaking an international treaty.

And highly paid qualified lawyers of Nokia are not able to put this simple point forward :) they should hire dcjbs now as their counsel, isnt it ;)

Nokia actually has to pay, issue of contention is how much, thats what Nokia n tax authorities are fighting over.

 

Your right.  Those 8,000 workers may have to feel the pain that so many workers in the U.S. and Europe felt over the last 30 years as factories jobs were shipped to lower wage countries.

This sounds like sour grapes. European fat asses asking for more pay for less work is what created this migration of jobs to India and China in the first place, where billions are ready to do more work for less money. This is globalization, my friend! No use bitching about it in forums, grow up and learn to work harder and faster in the globalized world before you become obsolete.

And for sympathy for the workers part, don't you worry, Nokia can't just let go of 8000 people without a real good severance package, due to the pretty tight labor laws in India.

You know, the difference between "European fat asses" and some people in India, is that we "European fat asses" have a thing called "Human Rights". Something that India (like China) is in no place to give lectures about.
We "European fat asses" don't see nor treat people like tools. We don't force people to work on a almost-slave regime. We've long evolved from those barbaric times. And India will too, one day. One day the people of India will start to reclaim their basic human right of being treated by their employees as people with the right to be justly compensated for their hard work. When that time comes - at it will come - just like in Europe, those who exploit others will be the ones with their asses burnt. And believe me, India does not want to go through a French Revolution.

Can I ask how? Have you been to India? Unless you've seen it first hand you can't compare. I have. And its quite sad aand a little embarrassing. Competition is high there and people are willing to do something for compensation when other won't. Its a privilege. On one hand westerners are "pampered" to a high level of dignity in labor and other countries fight for the chance to work a torturous and unsafe/healthy job

Where does KFC, Adidas, Nike, Pepsico, etc. get all those fancy resources from? Apart from the branding, who makes those products they sell at sky-high prices across the world? It is people from places like India, China or Africa who work their ass out yet don't get sufficient credit from USA or Europe (depending in the company). If it is an Indian company, the workers work in a much better manner than in a foreign company. Please do some basic research.

@DJCBS yeah right u are A SAINT thats what u guys are, go back to that shell u came out from

read some history between certain countries and ours then ull see ur own comment and groan with past ignorance

ull are more barbaric than us and dont talk about humanity bro u lack that

That was a racist comment dude.. I apologize on behalf of this guy to my European buddies..
Regarding the ruling, all I can say is Indian judiciary system is not much corrupted yet..The Indian govt- completely corrupt and screwed..that's why we Indians are trying to get rid of this moronic govt. (General elections in 2 months )
I hope the new Indian govt. Is less corrupt and takes care of this mess.
Peace :)

Posted via the WPC App for Android!

There's an old saying that goes "Power corrupts, and absolute power corrupts absolutely."  I wish you good luck in getting the government you want, but as we have experienced in America, once a government gets too well-established (and I'm not talking the people so much as the institution), it becomes impossible to affect change with a change in leadership.

Real change requires revolution, and even then, it doesn't always work, as fear and uncertainty often drive the people back into a system they'd grown comfortable with, no matter how much they hated it.

Unless you chopped out every one in current generation, I don't think the election will do any good. We in Indonesia already trying that couple of times, and while the corrupt people leave, the corrupt governance system stay. But nevertheless, I pray for our success (we too will held elections next month).

Now its the Indians that are getting fat. Look around. India is #1 for new cases of diabetes. Everyone get off your asses and start walking. And yes, I believe IT is asking for a $500 million in bribe. To be split amongst now fat ass Indians.

Not everyone are getting fat buddy, its just the politicians. And as far as the statement 'India is #1 in diabetes' goes, you do realize that the population of India is second only to China, right? More people = More cases of diabetes. Please refrain from using the word 'Indians' (i'd be more comfortable if you used 'Politicians' or 'Government of India') i get the feeling that you are cursing the entire population of India for the mistakes that the Indian politicians make.
 

The Indian government is not for the people or even by the people. Unless there are big changes Im afraid things are not looking good. Nokia is not the only company being blackmailed. You can't change tax laws on the fly. I apologize for the rant, being an Indian myself.

Yes, i admit that the government of India is corrupt. I feel that Our laws are kind of discriminatory in nature and not to mention are outdated. We need a total overhaul (of the judicial, constitutional and governmental system)

As cold as it sounds... You have a point... It's just the way the world works... They really should be blaming there own government.. It seems as though India is trying to shaft other companies as well...

we blame wherever necessary and support wherever necessary man,ur points are valid and stuff but here the ruling is clear and not corrupt otherwise believe me even we would have blamed them im not saying theres no corruption at all but its just overrated... dont take my comment in a wrong way i know ur not a forum troll unlike a few others :)

Is it not the common goal of businesses to minimize expenses and maximize profits? If so, Nokia didn't do anything Apple or Google isn't already doing to save money. Honestly, your statement really show what Nokias bottom line was, and it wasn't the Finnish community having jobs provided to the community,so don't blame Indian's for Nokias choices.

While I take your point, of course indian workers deserve our sympathy. If workers in Europe had been less parochal then they would've exported the trades union movement and indian workers would've have been less ripe for exploitation - and now abandonment - by business. This is an important reminder of the profit motive and what it does to human beings.
 

Though you are right, I believe there is no motive behind this but the government trying to mint money from foriegn companies. Don't you see, they have them cornered. They either pay them or risk loosing a manufacturing site.

Isn't it the objective of big companies like Apple, Android, and Google to save money by subjecting the chosen group of people, Indians in the case to lower wages, less benefits, and receive tax incentives as well by moving their plant from Finland to India in the first place? We could argue this point forever, but the fact is that Nokia knows they owe some dollar amount in taxes and could have paid the 300+million some time ago, but chose to fight it and they are now facing 578m tax bill instead.

I never said Nokia did not owe them money. I don't know much about that, but the thing is this is common practice here and Nokia's issues with the government arose to this international level only because so many are following the story. 

I totally agree with you, may be those 8000 people did not have to loose their jobs, maybe they went on to do something more productive and the work remaining came to India because some things must done by people, that which India has a lot. :)

Ummm. It is a multinational company. There will be outsourcing of Jobs. According your argument, nobody outside of Finland should work for Nokia. After all Finland first, European second

Well
A) a person who is middle aged now, if you take away his job, that is worse than keeping a youth jobless, the youth can find something to do, can somehow sustain himself, but a middle aged man has to sustain a whole family.... You destroy a family if you take his job
B) the same work in Europe/usa would take less men, more machines.
C) how would you cater to Indian markey demands from a European/american factory ? Import phones all the way and double their price ?
Believe me man, it isn't that easy...

Well said. While many feel sorry for foreign workers, nobody speaks of the ones that lost those jobs first in the company's homeland.

 

It doesn't matter! If the trade agreement with Finland and India says they did not have to pay the tax and now are trying to change the agreement. The Indian government is going to be responsible. We know the deal is not as good for Microsoft if they do not have a well established location and employees to invest in. The point is everyone is worried about the jobs of these,people and not paying attention to the fact the government is putting thoughts jobs in jeopardy. Not Nokia ir Microsoft! 500 million dollars is tons of money and they want to continue to tax them after this is over!

Honestly, as a former programmer who lost not just one job, but THREE jobs to Indian programmers because it was so much cheaper to pay them than someone in the US, I could care less if 8,000 Indian workers lose their jobs.

Besides which, what do they need with Nokia, when Vonage is trying so hard to get all their business.  :)

Well .. I have the opposite from you. I get my current job because my employers unsatisfied with Indian programmers they hired (just ones that they hired, so don't generalized that Indian programmers are bad). It just about supply and demand. Don't hate them for that.

I appreciate you as a programmer, but I have a simple statement for you: when Toyota move its automobile manufacturing plant from over seas to San Antonio TX, do you think residents of SA, wanted those people to lose their jobs? No, they were just glad to have the opportunity to get descent paying jobs in their communities. The same is true everywhere. I don't think anyone wishes that others lose their employment.

I would think that, as all companies in a similar situation, they made a decision that benefits the company as a whole, thus better preserving the remaining jobs.

Nokia should have paid their taxes or disputed it much earlier. Taxes are paid annually, not bi-annually.

There were no taxes to pay because of the tax agreement between Finland and India. Now it seems India's going back on the agreement (as it is with the countries the other manufacturers in dispute are from) and trying to claim that there is owed tax.

I applaud you, you won the dumbest idiot on the planet award. May I remember you that india is corrupt as fuck? How would you defend a company in a corrupt case started by a corrupt greedy government? Stop being that patriotic dumbass and start thinking for a sec.

You are making perfect sense and only smart ass alive...all the other multinational companies are dumbest idiot as well...not sure why these companies want to do their business in a corrupt country. Corruption, politics and business, not sure how well you understand these concepts. But I believe you should reach out to all these dumb companies and explain them how right you are....trust me you will get a real applaud :)

wow Forc3 you're kinda of a jerk....  rahul.sharma's points make perfect sense and you really don't have to be so freaking insulting.

Whoa whoa whoa. Corrupt I agree. Corrupt than most I agree. But corrupt as fuck? Thats an overatatement. FYI, its not like Court has vendetta against MNC. even indian companies like Kimgfisher and Sahara are in Court over disputes. Do u have a copy of Indian Finnish Tax agreement or the Court Ruling. If not, please refrain from making such drastic comments

This article itself refers to the bilateral tax agreement between Finland and India that prevents companies from being taxed twice on the same income. This is what the Indian government has gone back on and is now trying to sue for.

Judge: after hearing nokias defence lawyers (nik rolls and others) points i am ready to declare my judgement.. Nokia will pay 571 million for the time being.
nokia: what?
judge: 600
nokia: but??
judge:700
nokia: whoa!!
judge: 800
nokia: hmm
judge: one thous....
nokia: okay okay we ll pay.
judge: case closed.

What if the final answer be ... "OK. We'll .... Close the factory." ?
I'm curious to know what will the judge and the government say. Neither side of the outcome affect me. So just my curiosity.

Half a billion man. Where is Nokia going to get this money from? They can't just go around throwing half a billion considering they're in a whole right now. WP didn't pay off like they imagined it would so they needed to sell.

When did I ever make a racist remark? I was stating how media in any country will favour home ground when it comes to international issues.

Secure the deal, borrow it from Microsoft from the agreed amount. Microsoft pays that much less money from the total price. Call urgent investors meeting, re vote.

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