Axiata Ncell internationalizes the capital gain tax issue

Axiata Ncell has internationalized the pending tax issue. They have filed a request, seeking arbitration for the resolution of the capital gain tax (CGT) issue, for which Supreme Court earlier decided to recover from Ncell Axiata. Later Large Taxpayers office asked Ncell to pay Rs 39.06 billion within a week.

Axiata Group’s UK Subsidiary and their Nepal mobile operator, Ncell made the request for the arbitration at the international center for the settlement of investment disputes (ICSID). It is a center under the World bank which looks after the tax and investment disputes.

• Supreme Court orders to recover Capital Gain tax amount from Axiata Ncell.
• Government to recover Tax from Ncell within 3 months.
• LTO asks Ncell to pay Rs 39.06 billion within 7 days.

Axiata Group also informed the Nepal Government about the issue, last Friday.

Ncell also filed a petition in the supreme court challenging the tax amount of Rs 39.06 billion, calculated by LTO. They also claim that there is some error in the calculation of the CGT amount by the authorities. They further claim the CGT amount of just Rs 14 billion from the sold out of Ncell company from TeliaSonera to Axiata at Rs 143.6 billion.

SC had temporarily stayed the tax recovery and asked further discussion on May 6. Until that day, they asked the government authorities for not to take further steps for the tax recovery. Along with the legal action in the country, they go international for not to leave any stone unturned for their claim.

In the request, Ncell points the bilateral agreement dated March 2, 1993, between Government of UK, Great Britain & Nothern Ireland and Government of Nepal for the promotion and protection of Investments. So, Ncell claims Nepal government contravenes the bilateral agreement with the imposing of the CGT.