Nokia’s Chennai factory, one of Nokia’s biggest facilities, was raided by Indian Tax officials who are seeking to recover tax payments totalling as much as £340m. This incident happened just days after UK’s Vodafone was asked to pay back more than $2bn in back taxes.
According to Nokia, they never fail to observe proper laws and rulings in any parts of the world they operate. That is, they are in full cooperation with the Tax officials to ensure that all of their issues get sorted and all of their enquiries will be fully taken care of.
As a result of the raid in India, the shares of Nokia fell considerably to more than 6% to 3.07 euros in Helsinki. As expected, the incident greatly affected the performance of Nokia in the market.
Nokia’s Chennai factory in India plays a very important role in making Nokia the world’s number one in phone manufacturing. India is known to be the fast growing phone market in the world and is considered as the key to Nokia’s success.