We signed audit reports as per Nokia advice, say Price Waterhouse auditors

C Shivakumar

Chennai:

Income Tax sleuths on Thursday questioned Price Waterhouse and Co auditors on what basis they signed the audit report of Nokia India Sales Private Limited for the last six years that has resulted in tax evasion worth Rs 2,500 crore to Rs 3,000 crore.

Income Tax sources told Express that two Price Waterhouse and Co auditors were grilled over the issue for more than five and a half hours. During the interrogation it is learnt that the auditors told officials that they have signed the audit report based on the advise of Nokia India.

Interestingly, on Wednesday three auditors of PW and Co were grilled over the issue. Income tax sources said that one of the three had to go for an urgent work and is likely to appear on Monday along with another auditor, who was not present on Wednesday, for the enquiry.

Income tax sleuths also quizzed the managing director of NISPL P Balajee on the tax evasion. “The chief financial officer of Nokia India and the taxation head, both women, did not appear for the investigation. It is likely that on Friday they will appear along with Balajee for investigations,” said income tax sources.

Interestingly, five other officials of Nokia India are also being summoned for the enquiry. They include production head director, two from the accounts department, a corporate affairs head and a executive from the finance department.

Interestingly, it is believed that Nokia as well as PW and Co officials wanted the investigation to be transferred to New Delhi. IT sources neither confirmed nor denied it but said that they will complete the investigation and submit a report to New Delhi office. “The New Delhi office would pass the assessment order,” said IT sources.

Sources said that Nokia officials have also said that the Finnish parent company has taken up the Nokia tax evasion issue with the Indian government