Nokia Corporation (ADR) (NYSE:NOK) is going through its bad time frame. The Supreme Court is asked by the income tax department to get details about the properties of company in India. Over Rs 3,800 crore is demanded by the tax department as liabilities from the Supreme Court.
Firstly, Nokia filed a case against the Delhi High Court ruling in the Supreme Court where it had settled down that the company should not have to give an assurance from its parent company.
The I-T department had asked the Supreme Court yesterday that an addition of attachment of Nokia’s Chennai plant, which is currently in their possession is required by them. Nokia will be permitted to transfer this asset to Microsoft only by fulfilling two requirements, according to the High Court’s final ruling. Firstly, Nokia has to submit a bank assurance and secondly this property should be unfreezing after Nokia Finland will submit a letter of assurances.
Now instead of two requirements, Nokia has to fulfil six requirements in order to get permission of transferring its assets, according to the tax department. In these six requirements, first is the submission of about Rs 3862 crore for the existing tax liabilities that incorporates the interest section as well. In an escrow account, Nokia should also have to submit another Rs 5000 crore and the amount paid by way of dividend to Nokia Finland by Nokia India should be brought back into the country which is about Rs 3500 crore, will also be paid by the company.
Now it is interesting to see what steps will be taken by the Supreme Court in this lawsuit and today the hearing will take place. The tax department has taken a very tough decision of asking for attachment as foreign shareholders will not appreciate it at all, according to lawyer Anu Dutt who told CNBC-TV18.