Ncell Axiata Capital Gain tax issue

From one end to the other, the telecommunication giant Ncell is doing everything to escape its tax laibility. With the controversy there has been number of stories that has build, the recent one is the involvement of the prime minister and how he is holding the Nepal government staffs from taking action against Ncell for not paying tax. It has surfaced that Ncell has paid a hefty amount to the Party in context of making the settlement before the election.

This case has questioned the current Nepal Government's interest and action mechanism upon why they have not been able to take any action against Ncell. 

In the past When TeliaSonera sold Reynolds Holdings shares in Ncell to Axiata for over $1 billion, Nepal’s Large Tax-payers’ Office had said Reynolds owed the government Rs35 billion in taxes and demanded it pay the amount and fines to a total of Rs61 billion.

Ncell Nepal refused to pay that full amount, and transferred only Rs21 billion capital gains tax. After this, the writ was filed, and the Supreme Court on Wednesday also rejected a case filed by Ncell.

The case became controversial after two foreign investors traded ownership of a Nepal-based telecom company. Since TeliaSonera has already left Nepal, the Court found that the buyer is liable to pay capital gains tax if the seller did not.

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