KATHMANDU, April 30: Ncell and its parent company Axiata Group of the UK have filed a case for arbitration at the International Centre for the Settlement of Investment Disputes (ICSID) regarding the capital gains tax (CGT) assessed on the telecom company by the Government of Nepal.
According to www.mobileworldlive.com, an international website that covers developments at mobile companies, the arbitration case has been filed at the UK-based ICSID. The center is the world’s leading institution devoted to international investment dispute settlements.
Why Ncell paid the CGT?
Ncell had filed a writ petition at the Supreme Court challenging the CGT assessed against it by the Large Taxpayers Office (LTO) a week ago.
In its writ petition, the company claimed that the LTO has erroneously assessed its tax liability at Rs 39.06 billion. Ncell stated that the CGT stands only at Rs 14 billion as it is not responsible for interests and fines for delay in payment as the tax has just been assessed.
After assessing the CGT on the Ncell buyout deal, LTO had asked the company on April 23 to pay the remaining CGT amounting to Rs 39.06 billion, including interest and fines, within a week . LTO made its final assessment of the CGT on the buyout that took place three years ago after the Supreme Court issued a verdict on the matter two weeks ago.
Following the Supreme Court verdict, LTO assessed the CGT at Rs 62.63 billion and asked Ncell to clear the remaining amount payable of Rs 39 billion.
Officials at Ncell in Kathmandu did not respond to Republica’s repeated calls over the matter. Surendra Bhandari, a senior advocate who is pursuing the case against Ncell, said he is yet to receive any information over the issue.
