KATHMANDU, Feb 12: In a recently written explanation submitted to the Supreme Court (SC), Nepal Rastra Bank (NRB) has claimed that the interim order issued by the apex court on December 24, 2017, has offered tax relaxation to Reynolds Holdings Ltd, which purchased the shares of Ncell.
Stating that Reynolds Holdings Ltd was purchased by Axiata Company and that the tax office concerned has already published a notice in order to clear the remaining tax to be paid, the central bank claimed that the tax was not cleared by the taxpayer.
“This [The interim order] has created a situation of tax rebate to the taxpayer while the existing legal provisions do not give any tax rebate to the company concerned,” the written explanation jointly submitted by Governor Dr Chiranjiwi Nepal and Director of Clearance Department, Ramesh Kumar Pokharel, said. The NRB also clarified that the current owner of the company is Axiata Company.
The Large Tax Payers Office also claimed that the interim order is against the accepted principle of justice because a small share of the tax has already been paid while the bulk of it remains unpaid.
“An interim order is supposed to keep an issue on hold but the direction to the large taxpayer's office not to collect the tax and release the frozen assets created a situation of the final decision,” claimed Gangaram Gelal, Chief Tax Administrator, Large Taxpayers Office.
“On the other hand, the matter was supposed to be decided by a full bench as per the previous order but it was decided by a division bench. Therefore, the interim order was insignificant. The confusing interim order must be revoked,” the written reply states.