PETALING JAYA: Axiata Group Bhd’s subsidiary Ncell Private Ltd has been ordered to pay capital gains tax of NPR39.06 billion (RM1.44 billion) by April 22.
Axiata said a letter was issued by he Large Taxpayers Office and is in relation to the tax to be collected from Ncell in relation to the indirect transfer to Axiata Investments UK of an 80% stake in Ncell through the sale of Reynolds Holdings Ltd by the previous foreign investor, TeliaSonera Norway Nepal Holdings AS.
“The letter stated that the assessment order issued against the seller (TeliaSonera) in relation to the transaction, has been transferred to Ncell and further states that the balance amount of the capital gains tax arising from the transaction due is NPR39.06 billion. Ncell has been ordered to deposit the said amount within seven days, or by April 22.”
Axiata and Ncell are currently reviewing the letter and are considering appropriate course in relation to the letter.
“To date, Axiata and Ncell have dutifully and responsibly complied with all relevant regulatory and legal requirements in relation to the transaction and acknowledge the order without prejudice to their remedial rights,” said Axiata.
Ncell contributed US$1.17 billion in taxes since 2014/2015. In 2018 alone, Ncell paid US$257 million which accounted for 4.2% of total tax revenue of Nepal’s government that year.
Over the last two fiscal years, Ncell’s total accumulated capital investment reached US$164 million, with US$66 million recorded in the last fiscal year.