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Income tax officials knock on Nokia's doors in Chennai

A source in the department, who did not wish to be identified, said the company is being investigated for violations to the tune of Rs 3,000 crore.

Business Today | January 8, 2013 | Updated 19:51 IST

On Tuesday, January 8, income tax sleuths were on the premises of handset maker Nokia's factory in Chennai. While no official was available for comment, a source in the department, who did not wish to be identified, said the company is being investigated for violations to the tune of Rs 3,000 crore. He added that about 20 IT officials were studying the company's books. Nokia is headquartered in Finland.

BT could not independently verify what the source said.

In a statement, Nokia confirmed that tax officials indeed visited its factory. "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," an official statement from the company said. It did not elaborate on the nature of the inquiry.
 
The company further added: "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."

The Chennai factory, one of Nokia's largest mobile phone manufacturing facilities, employs about 8,000 people. The company is said to be investing more in the plant in line with its plans to shift more production closer to component suppliers in Asia.

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