Ncell, Axiata need to pay Rs75 billion in capital gains tax

  • Liability of two companies is related to 2016 purchase deal

Feb 11, 2019-

Five days after the Supreme Court ordered Ncell, a private sector telecom giant in Nepal, and its Malaysian parent company Axiata to pay capital gains tax, the tax authority said on Sunday that their total tax liability, including interest for delaying the payment, stood at Rs75 billion.

The Large Taxpayers’ Office (LTO) also said that Niraj Govinda Shrestha, who sold his 20 percent stake in the company to Sunivera Capital Ventures owned by Bhawana Singh Shrestha, needed to pay around Rs12 billion, including interest, in capital gains tax.

Tax liability of these companies is related to the buyout of 80 percent stake of Ncell in April 2016. Niraj Govinda had sold his stake just ahead of the 80 percent stake buyout deal. A full bench of Chief Justice Cholendra Shamsher Rana and Justices Mira Khadka, Bishwombher Prasad Shrestha, Anandamohan Bhattarai and Tanka Bahadur Moktan on Wednesday issued an order of mandamus, saying Ncell and Axiata were liable to pay capital gains tax after its previous owner—TeliaSonera, a Swedish company—exited Nepal without paying capital gains tax.

Published: 11-02-2019 11:37

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