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Ncell pays Rs 4.5 billion of its total CGT dues

Himalayan Times | 31 December 2019

Ncell pays Rs 4.5 billion of its total CGT dues

KATHMANDU: Private telecom company Ncell has paid Rs 4.5 billion out of the total amount due as capital gains tax (CGT) in its buyout deal.

The Large Taxpayers Office (LTO), on December 22, had given an ultimatum to the private telecom to clear its outstanding CGT dues within 15 days.

Based on the verdict of the Supreme Court, the LTO had asked Ncell to deposit Rs 22.44 billion remaining CGT within 15 days on December 8. However, as the telecom company did not pay the said amount within the stipulated time, the LTO asked Ncell to deposit Rs 22.6 billion tax dues, including interest and late fees.

Jhalak Ram Adhikari at the LTO, confirming that Ncell has submitted Rs 4.5 billion today, added that the company has requested to pay the remaining amount in instalments. He stated that a decision to that regard will be taken by the Office on the basis of a payment plan that the company is expected to submit. If the plan is approved, Ncell will have to clear the dues by mid-July of 2020, Adhikari added.

Meanwhile, the International Centre for Settlement of Investment Disputes, on December 19, had issued an interim order directing the government — including the Inland Revenue Department and LTO — not to take any steps to enforce its decision to collect the outstanding capital gains tax, including interest and penalties, from the sale of Ncell by TeliaSonera Norway to Axiata UK.

Axiata had acquired 80 per cent stake in Ncell for $1.4 billion in April 2016.

 source: Himalayan Times