Freeze of Indian assets won’t affect Microsoft deal: Nokia

Freeze of Indian assets won’t affect Microsoft deal: Nokia

Nokia claimed on Monday that the freeze of its assets by Indian authorities would not affect its deal with Microsoft as it has sufficient assets in the Asian country to meet its tax obligations.

In early September, beleaguered Finnish handset maker hit a deal to sell its phone business to Redmond-based tech giant Microsoft. But, the Indian tax authorities' last week's move of freezing Nokia's assets prompted many to predict that it would prevent transfer assets to a new owner.

On Monday the handset maker said in a statement, "We are now working closely with the tax authorities. Nokia has sufficient assets in India to meet its tax obligations."

The company also claimed that it had regained access to its bank accounts in India, though its local factories and buildings continued under freeze.

The Indian tax authorities froze Nokia's assets over outstanding tax payments that have been estimated to be millions of dollars.

Nokia, once the world's leading smartphone maker, is currently lagging far behind rivals like Apple and Samsung.

Nokia is not the only global company that is entangled in tax issues in India. British telecommunications firm Vodafone, Royal Dutch Shell, and General Electric (GE) are some of the other western companies that have faced similar tax disputes with Indian authorities.

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