\tAn international tribunal granted a provisional order preventing Nepali authorities from demanding Axiata Group’s Ncell pay NPR22.4 billion ($194 million) in outstanding capital gains tax.<\/p>\n
The tax bill relates to Malaysia-based Axiata acquiring an 80 per cent stake in the Nepali operator in 2016.<\/p>\n
In a stock market filing, Axiata said the tribunal approved an application for provisional measures and ordered Nepal be restrained from taking any steps to enforce the government\u2019s demand.<\/p>\n
Axiata added its UK subsidiary and Ncell will seek remedies, including restitution of sums already paid, a permanent injunction against further attempts to collect capital gains tax and damages for losses suffered.<\/p>\n
In April Ncell, the second largest mobile operator in Nepal, filed a petition [1] with the country\u2019s Supreme Court against the Large Taxpayers Office, which ordered it to pay capital gains totaling NPR63 billion. The operator claimed the tax authority incorrectly calculated the amount.<\/p>\n
It later filed a request for arbitration [2] with the International Centre for the Settlement of Investment Disputes.<\/p>\n
In August, the Supreme Court reduced the amount to NPR45 billion [3]. Since Ncell already paid arout NPR23 billion, it was required to pay an additional NPR22 billion.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/asia\/asia-news\/ncell-challenges-capital-gains-tax\/
\n[2] https:\/\/www.mobileworldlive.com\/asia\/asia-news\/axiata-seeks-arbitration-in-nepal-tax-case\/
\n[3] https:\/\/www.mobileworldlive.com\/asia\/asia-news\/ncell-wins-capital-gain-tax-case\/<\/p>\n","protected":false},"excerpt":{"rendered":"
An international tribunal granted a provisional order preventing Nepali authorities from demanding Axiata Group’s Ncell …<\/p>\n
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