Nokia has been good tax-paying citizen: CEO - Times of India

NEW DELHI: Nokia CEO Stephen Elop said on Thursday that the phone maker did not evade taxes in India and has complied with mandated regulatory obligations. The assertion by the struggling Finnish company's top boss comes at a time when it faces an over Rs 2,000 crore tax demand from the government against which it has gone to the Delhi high court. "We feel very strongly that we have been very good citizens in terms of paying the appropriate authorities the appropriate taxes. The matter is now in the courts and we will work through the normal process," Elop said, denying any wrongdoing on the part of the company. Elop, here for the global launch of Nokia's new As ha (501) touch-phone, said the company is a serious investor in India, which is one of the company's biggest markets globally. "India is one of our most-important market in the world... it is a critical market for Nokia." The income tax department had in March issued the massive tax demand on the Indian unit of the mobile phone maker for not withholding tax on the payment made to its parent as royalty for the software used in its mobile phones since 2006. The demand, which included both tax and penalty, has been stayed by the Delhi high court. And, as Nokia India works on the issue with the authorities, the Finnish government has also stepped in, seeking a negotiated settlement to the dispute under the Mutual Agreement Procedure (MAP) that is part of Double Taxation Avoidance Agreement (DTAA). Elop, however, refused to go deeper into the tax matter. Elop conceded that the market has been competitive as companies like Samsung and Apple have upped the ante. However, he said the Lumia series in the premium-end and the Asha range in the entry-level will help the company retain its grip. "We have gone through challenging times... but now we have to start (making a comeback) with new products and then build a momentum." Samsung recently toppled Nokia from the leadership position in the mobile phone market and has been launching new phones across various p oints to gain a bigger foothold. While the company launched its flagship Galaxy S4 model in India earlier this month, the Korean company has also introduced an all-new entry-level series in the 'Rex' to counter Nokia's Asha range. One of the reasons behind Nokia's falling share in the mobile phone world has been the company's near-stubborn refusal to adopt the ubiquitous Android operating system (OS) of Google. Elop, hired in 2010 to turn around the company, is under pressure as a controversial decision to switch to Microsoft's Windows OS is yet to bear significant results after two years, with shareholders this week saying he should reconsider the move. However, Elop added that Windows8 OS helps Nokia stay differentiated from the numerous companies selling Android devices. via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHbaHgQbCOBCbq6pznG_aOzHWCzZg&url=http://timesofindia.indiatimes.com/tech/enterprise-it/infrastructure/Nokia-has-been-good-tax-paying-citizen-CEO/articleshow/19981088.cms

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