Nokia sent a letter to India's commerce ministry threatening to leave the country because of Indian taxes.
The letter said that the "political risk" in India was increasing due
to tax claims from the government. India's passage in March of a
retroactive income tax violates a bilateral treaty between India and
Nokia's native Finland, Nokia says.The company is also irked about India's refusal to refund 10 years of value added tax refunds that India promised in exchange for Nokia setting up shop in the country.
Nokia's letter was sent in June, but was only recently reported on.
In an email to The Register, Nokia said it was committed to its India operations, and made the discussions appear far more like a friendly chat than a confrontation, which is how it has been portrayed in media reports. (The Register headline: "Nokia's India threat letter.")
In January, Indian officials raided a Nokia factory in an effort to recoup what the country claims is US$500 million in back taxes. India has also targeted Vodafone, claiming the UK-based company owed a few billion in back taxes.
