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LTO asks Ncell to pay 39 billion tax amount within 7 days
Large Taxpayers Office (LTO) has determined the Capital Gain Tax amount to recover from Ncell is Rs 39 billion 60 million, 6 lakh, 84 thousand and 814. They ask Ncell to pay the tax amount within 7 days.
There was a controversy with Ncell Capital gain tax issue during the equity transfer of 80% stake from TeliaSonera to Axiata. Ultimately Supreme Court took the decision on Magh 23, 2075, to recover the CGT amount from Ncell Axiata itself.
Although the decision was taken, it took more than 2 months to publish the full text of the Verdict. The Large taxpayer’s office couldn’t determine the tax amount on its own. The full verdict paved the way for the calculation and also asked LTO to recover the amount within 3 months.
Calculation of CGT
TeliaSonera sold the 80% stake in Ncell to Axiata at an amount of 143 billion, 653.7 million Nepali rupees. AS per the rule, CGT amount will be 25 % of the profit from the deal amount which comes at 35.9 billion. Similarly, the interest of that amount for two years is 8.4 billion and a late fee of 18.4 billion.
Altogether Large Taxpayers office calculated the total amount of CGT as 62 billion and 630 million rupees. Ncell had already paid 21 billion for the same CGT. As known, Ncell had also paid the late fees and penalty of 2 billion and 262 million as per Setopati. So the total amount to recover from Ncell comes at 39 billion and 60 million rupees.
Ncell had already issued a press statement saying they “dutifully and responsibly complied with all relevant regulatory and legal requirements in relation to the transaction”. So, it seems likely that Ncell will come ahead to pay the determined tax amount.
Have your say on the Ncell tax issue that comes at 39 billion rupees now, in the comment section below.
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