India analyzes accounts of Nokia and can delay business with Microsoft

SAO PAULO-the Government of India appointed a Special Committee to review audit the accounts of Nokia in the country, a step that can disrupt even more the Finnish company's plans to sell its devices and services unit to Microsoft.
According to the tax rules of India, the Government may indicate what is called a special audit in a private company — typically using an external auditor —, if you suspect that the company withheld revenues, paid less taxes or active okay.
The audit can take up to six months to complete.
"An external auditor will have to analyze the accounts [since the case against Nokia is very complex]," said a senior government official to "The Wall Street Journal. "The auditor will make an assessment of the company and its transactions".
Nokia confirmed that it received a request for a special audit of the Indian authorities. "As with all discussions on taxation in India, Nokia will cooperate with the authorities and, where necessary, will defend itself vigorously," said a spokesman for the company.
Nokia is already being charged for taxes in India, a bill that could reach several million dollars. Its plant in the southeastern region of the country is still shrouded in negotiations with the authorities, who have blocked their participation in negotiations with Microsoft.
The Finnish company challenged the decision, but the Supreme Court of India said that the manufacturer has to pay the taxes due before the factory is transferred to Microsoft.