Tomahawk, WI 12/10/2013 (BasicsMedia) – Nokia Corporation (ADR) (NYSE:NOK) is a $29.70 billion market capped tech company. The company was once the leading manufacturer of mobile phones until smartphones became the mainstream mobile communication devices. The company recently reached a deal with software manufacturer Microsoft Corporation (NASDAQ:MSFT) for the transfer of its device and services unit.

This transaction will fetch Nokia Corporation (ADR) (NYSE:NOK) more $7.2 billion. The Finnish company is expected to use these funds to improve its other business. After the sale of the handset unit, the company is left with three businesses namely HERE mapping service, Advanced Technologies and its NSN networking unit.

The company has already turned around NSN which now makes profits after a long streak of losses in yesteryears. A lot of funds need to be pumped into the Advanced Technologies as this is the unit that deals with patent assets. It should be known that Nokia Corporation (ADR) (NYSE:NOK) makes big money from patent licensing which makes this unit one of its key resources left after the sale of the handset business.

Indian Tax Dispute

While all has been progressing well since the start of the talks to sell Nokia Device and Service business, and with even the same receiving the nod of EU regulators, India’s tax case against the company could derail asset transfer to Microsoft in the deal.

Indian tax authorities have been asking for unpaid taxes which were initially reported to be around $340 million. However, it is now reported that the same could hit $3.4 billion. This mean that Nokia Corporation (ADR) (NYSE:NOK) not might not transfer its Indian’ assets to Microsoft Corporation (NASDAQ:MSFT), or better still, the company could use nearly half of its sales revenue of $7.2 billion to pay the tax bill. So far, Indian tax regulators have frozen the company’s assets in connection to the tax bill dispute. But NOK has moved to court to argue its case.

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