Nokia released a statement today saying that it had sent a "letter of objection" to the Indian government following a January raid on its facility in Chennai over alleged back taxes totaling $545 million. The Finnish tech superpower firmly denied the allegations and said:
"The actions of the income tax authorities in Chennai are excessive, unacceptable and inconsistent with Indian standards of fair play and governance. We do not see any merit in any of the claims, and are ready to defend ourselves vigorously."
Nokia, whose second-biggest cell phone market is India, also stated that they have yet to receive "any official information" from the Indian government regarding tax claims. And they are not alone in their tax woes with India. Oil company, Royal Dutch Shell, and mobile giant Vodafone are both fighting claims by Indian officials.
In the wake of a bloated national deficit, India's finance minister P. Chidambaram, has made tracking down tax evaders a top priority. However, he says that he wants a "stable tax regime with clarity on tax laws" and to maintain a "non-adversarial" approach to tax collection.
How's that going for you, Minister?