Telenor will have to pay additional taxes of 2.5 billion Norwegian crowns

Telenor Norway has received a tax assessment according to which the company will have to pay additional taxes in Norway of 2.5 billion Norwegian crowns for tax year 2013.

A deduction expenced in 2013 for a loss suffered in 2012 due to settlement of bank guarantees given in respect of external funding in its Indian subsidiary Unitech Wireless has been disallowed for tax purposes by the Norwegian Tax Authorities

Telenor decided to enter the market in India in 2008. In 2012, the Supreme Court of India revoked the licenses of the Telenor mobile company and seven other mobile companies. In the fall of 2012, Telenor paid around NOK 4.2 billion to buy back licenses in six of 22 telecommunications regions.

Following a dispute with Telenor’s Indian partnership – Unitech – the parties agreed to transfer all the valuables of their joint unit company Mobile Unitech Wireless to a Telenor-controlled company – Telenor India.

In the annual report for 2018, Telenor Norway writes that in 2012 the company recognized claims against Unitech Wireless after the company released its guarantee of NOK 10.6 billion for all interest-bearing debt in Unitech Wireless .

– deferred tax asset of 2.5 billion Norwegian kroner has been recognized. In 2013, the business transfer from Unitech Wireless to Telenor India was completed and Telenor ASA deducted NOK 9.3 billion as a tax loss in its tax returns.

Telenor later withdraw from the Indian market after losses in total of 25 billion.

Leave a Reply

Your email address will not be published. Required fields are marked *