Ncell says it has fully cleared CGT

Published On: June 5, 2017 05:04 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, June 5:  Ncell has claimed that the company has fully cleared of CGT with the payment of Rs 13.6 billion advance deposit  to the government on Sunday.

Issuing a press release, the company has claimed that it has settled down its tax related matters with the Large Tax Payer Office in relation to the indirect sale by the previous owner TeliaSonera.

Similarly, the company stated that it has deposited further advance of approximately Rs 13.6 billion on behalf of TeliaSonera.

In its statement, the company has further mentioned that following the payment in advance, the Large Tax Payer Office has certified and acknowledged the company depositing advance tax pursuant to Section 95A of the Income Tax Act, 2058 (2002), and the Company is now fully cleared in relation to the sale by TeliaSonera which attracted capital gains tax under the Income Tax Act, 2058 (2002).

In its statement, Ncell Managing Director, Simon Perkins said, “Ncell has consistently complied with the laws of the country, and have on all occasions exercised the highest standards of governance and compliance pertaining to the fulfilment of its tax obligations.”

Ncell had paid the CGT amidst a debate over whether the tax should be paid or not and who should pay the tax as there was no clear provision on acquiring CGT on offshore transactions. The amount paid by the Ncell as the CGT calculates to be the 15 percent of the share transactions.

Malaysian telecom giant Axiata had bought Reynolds Holding, which held a majority stake in Ncell, from TeliaSonera at around 140 billion in April last year. The amount deposited at the Large Tax Payers' Office so far is the 15 percent of the transaction.

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