National

SC orders government to recover capital gains tax from Ncell and Axiata

- Sanjaya Lama, Kathmandu

Feb 6, 2019-

The Supreme Court on Wednesday issued a mandamus order directing the government to recover the due capital gains tax from Ncell and Axiata.

A division bench headed by Chief Justice Cholendra Shumsher Rana and comprising Justices Mira Khadka, Bishwombar Prasad Shrestha, Ananda Mohan Bhattarai and Tanaka Bahadur Moktan today scrapped the writ of Ncell and its related companies after concluding the hearing that started from Thursday.

The court issued the order responding to the writ filed by former Secretary Dwarikanath Dhungel. However, the writ lodged by advocate Bhabesh Gautam has been quashed.

Earlier on January 4, 2018, the Large Taxpayer Office (LTO) had published a notice directing Telia Company—the previous owner of Ncell—to deposit capital gains tax of Rs65.4 billion imposed on the sale of the telecom company to Axiata Group.

The notice was issued 10 days after the Supreme Court cleared the way for Ncell to repatriate its dividend from Nepal.

The amount, according to the LTO’s notice, includes interests and fees accumulated till January 2, 2018.

Bowing to pressure and criticisms from a cross section of society, telecommunications service provider Ncell on June 5, 2017 had deposited an additional Rs13.6 billion as part of the tax applicable on the profit generated through sale of the telecom company.

The amount deposited by Ncell is part of the 15 percent withholding tax, or tax deductible at source for capital gains.

In May last year, the company had paid Rs9.97 billion as 15 percent withholding tax. It had filed the tax return based on its own calculations.

Earlier on October 10, 2017, the Supreme Court had directed the Large Taxpayer Office, Inland Revenue Department and Finance Ministry to furnish details on their decision to determine capital gains tax on the sale of Ncell shares by Niraj Gobinda Shrestha to another domestic investor.

 

 

 

 

Published: 06-02-2019 19:06

User's Feedback

Click here for your comments

Comment via Facebook

Don't have facebook account? Use this form to comment

Main News