India's most trusted brand Nokia hit with £1.5bn tax bill ? The Register
lets outsource our tax authorities!
"Nokia will have to pay Rs 13,000 crore before March 31,” he said. Of that sum, Rs. 3,000 crore (£355.6m) is apparently for tax violations and Rs 10,000 crore (£1.2bn) is related to transfer pricing irregularities.
Transfer pricing – which refers to the trade between two related companies – is one of the hottest areas of international tax fraud, occurring typically when two subsidiaries or a parent and its subsidiary distort the price of traded goods to lower the overall tax bill.
India’s Income Tax department alleges in the report that Nokia hasn’t paid tax on certain software supplies and is trying to reorganise its business to circumvent direct and indirect tax liabilities, according to Economic Times.
The tax clampdown is part of a wider campaign by Indian officials focused on large multinationals in the region, with Vodafone and Google already on the receiving end of some large bills.
Transfer pricing – which refers to the trade between two related companies – is one of the hottest areas of international tax fraud, occurring typically when two subsidiaries or a parent and its subsidiary distort the price of traded goods to lower the overall tax bill.
India’s Income Tax department alleges in the report that Nokia hasn’t paid tax on certain software supplies and is trying to reorganise its business to circumvent direct and indirect tax liabilities, according to Economic Times.
The tax clampdown is part of a wider campaign by Indian officials focused on large multinationals in the region, with Vodafone and Google already on the receiving end of some large bills.
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