Auditor questioned over tax avoidance
PWC could face possible fine
Last week the Indian arm of PriceWaterhouseCoopers was questioned by Indian authorities over its role in possible tax avoidance by the phone maker Nokia.
A senior Indian tax official told the Times of India that the investigation related to allegations that Nokia may have avoided around Rs 30 billion ($543 million) in taxes and are thought to have underpaid for around 6 years.
Two weeks ago tax officials raided Nokia's factory in the city of Chennai investigating a tax mitigation scheme that is thought to involve the company selling phones made in India to its parent company in Finland before selling them back to a second subsidiary in India for sale to the public.
PwC's arm in India both audits and provides tax advice to Nokia, said Mike Davies, a spokesman for PricewaterhouseCoopers International.
An anonymous senior income-tax official, told the Economic Times that, "The evidence gathered so far clearly indicates that PwC has advised Nokia and they were aware of the tax evaded and accounting practices. PwC are the auditors for Nokia and they may face prosecution from Income-Tax department".
Ethical Consumer is currently running a boycott call of online retailer Amazon over its tax avoidance scheme in the UK.
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