Ncell pays additional Rs 13.6 billion in CGT

Published On: June 4, 2017 06:49 PM NPT By: Republica

KATHMANDU, June 4: Ncell has paid Rs 13.6 billion to the government as Capital Gain Tax. The amount was paid to Large Taxpayers' Office.

Spokesperson of Inland Revenue Department, Chandra Kala Paudel, confirmed the tax payment. The Ncell earlier had paid Rs 10 billion as the CGT.

Ncell has paid the amount when there was debate over the process of acquiring CGT from a company based on offshore transaction.

 LTO, however, has not yet assessed the CGT on the share transfer deal of Ncell between TeliaSonera and Axiata.  

Malaysian telecom giant Axiata had bought Reynolds Holding, which held a majority stake in Ncell, from TeliaSonera at around US$ 1.03 billion in April last year. 

Reynolds Holding was TeliaSonera’s wholly-owned subsidiary, registered at Saint Kitts and Nevis -- a tax haven.

The TeliaSonera AB had sold its entire stakes in Ncell as part of its strategy to exit Asian and former Soviet markets to focus on Europe and its home Nordic region. The Swedish firm had sold a 60 percent stake in Ncell and also dissolved its interest in an additional 20 percent stake owned by local partner in December 2015. Ncell officially became a part of Axiata Group Bhd on April 12, 2016.

The Nepali taxmen started an initiative to tax the transaction only after TeliaSonera exited Nepal.

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