Nepal | September 29, 2020

Ncell gets 15-day ultimatum to pay CGT

ICSID’s interim order to be discussed with govt: LTO

Sujan Dhungana
Share Now:

Kathmandu, December 22

The Large Taxpayers Office today gave an ultimatum to the private telecom firm Ncell to clear its outstanding capital gains tax dues within 15 days.

Interestingly, LTO’s ultimatum to Ncell to clear the taxes came on the same day that the tax office received an official letter from an international investment dispute settlement court asking it not to initiate CGT collection process from Ncell.

Issuing an interim order last week, the International Centre for Settlement of Investment Disputes had directed the government not to ‘take any steps’ to enforce its decision to collect Rs 22.4 billion in outstanding capital gains tax, including interest and penalties, from the sale of Ncell by TeliaSonera Norway to Axiata UK. The LTO officially received ICSID’s order today. Though taxmen at the LTO said ICSID’s letter would be discussed with the government, LTO, contrary to ICSID’s directive, directed Ncell to clear the outstanding CGT dues.

Based on the verdict of the Supreme Court, the LTO had asked Ncell to deposit Rs 22.44 billion remaining CGT within 15 days on December 8. However, as the telecom company did not pay the said amount within the stipulated time, the LTO today asked Ncell to deposit Rs 22.6 billion tax dues, including interest and late fees.

Unlike previous letters that the tax office had sent to Ncell asking the company to deposit the outstanding CGT due amount, the letter sent today also states that the government will initiate action against Ncell on the basis of the Income Tax Act if it fails to clear its tax dues within the given deadline, Jhalak Ram Adhikari, chief tax administrator at LTO, said.

“If the company does not clear applicable CGT within the given timeframe this time, we will initiate action based on provisions mentioned from Section 104 to 109 of the Income Tax Act,” informed Adhikari.

Experts say that the interim order issued by ICSID is obligatory for countries that are its members based on previous tribunals, hence the government’s move to collect outstanding CGT from Ncell amid ICSID’s interim order is certain to further complicate the Ncell CGT issue.

However, Adhikari said the LTO was holding consultations regarding ICSID’s letter and its order with the Ministry of Finance and the Office of the Attorney General.

 


A version of this article appears in print on December 23, 2019 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

leicester city, Jamie Vardy

Vardy treble inspires Leicester to 5-2 win over Man City

MANCHESTER: A Jamie Vardy hat-trick coupled with goals from James Maddison and Youri Tielemans steered Leicester City to a stunning 5-2 win at Manchester City on Sunday and kept them top of the Premier League with a maximum nine points from three games. City had not conceded five go Read More...

Prominent personalities urge govt to save Dr KC

KATHMANDU, SEPTEMBER 27 A group of 33 citizens, who once held prominent positions, have urged the government to save the life of Dr Govinda KC, who has been staging a fast-unto-death demanding reform in the medical education sector for the past 14 days. Issuing a joint press release today they Read More...

La Liga, barcelona, Lionel Messi

Messi back in scoring business in dream start for Koeman

BARCELONA: Lionel Messi was back in scoring business for Barcelona on Sunday, leading them to a resounding 4-0 win at home against Villarreal in a near-perfect La Liga opener for the Catalans under new coach Ronald Koeman. Teenage forward Ansu Fati was in inspirational form for Barca, c Read More...

Atletico Madrid, Luis Suarez, La Liga

Suarez scores twice, gets assist as Atletico lay down marker

MADRID: Luis Suarez had a stunning impact on his debut for Atletico Madrid following his move from Barcelona, scoring twice and providing an assist as his side crushed Granada 6-1 at home in their first game of the La Liga season on Sunday. Suarez, who only completed his switch from Barc Read More...

Replace all Cabinet ministers: NCP Co-chair Dahal

KATHMANDU, SEPTEMBER 27 Co-chairs of the ruling Nepal Communist Party (NCP) — Pushpa Kamal Dahal and Prime Minister KP Sharma Oli — met today to discuss Cabinet reshuffle. A source close to Dahal told THT that Dahal asked Oli to replace all the ministers in his Cabinet, but the PM did not Read More...

CCTV surveillance/monitoring of kathmandu traffic

People told to be aware of fraudsters

KATHMANDU, SEPTEMBER 27 Police have urged people, especially those going abroad or returning from foreign countries, to be aware of fraudsters offering to exchange dollar bills at a rate cheaper than the market price. According to statistics with the Metropolitan Police Office, at least such 1 Read More...

Tourism activities resume in Pokhara

POKHARA, SEPTEMBER 27 Tourism industry has shown signs of revival after six months of the COVID-19 induced lockdown was relaxed in Pokhara. Mardi Himal Trek has witnessed mobility of tourists. Number of domestic tourists along the trekking route is on the rise, according to Raju Poudel, owner Read More...

NCB arrests three with 10 kg opium in Pokhara

KATHMANDU, SEPTEMBER 27 The Narcotics Control Bureau, Koteshwor, arrested three persons with 10 kilograms opium from Pokhara Metropolitan City, Kaski, yesterday. They have been identified as Gaja Pun, 50, and Chakkar Bahadur Pun, 40, of Eastern Rukum and Rabi Gurung, 24, of Gorkha. Superint Read More...