An international tribunal issued an order barring authorities in Nepal from demanding Axiata Group’s local mobile unit Ncell pay any additional levies and penalties related to a capital gains tax dispute.

In a statement, the operator group explained because Nepal had not adhered with earlier orders, the International Centre for the Settlement of Investment Disputes ordered it to pay Axiata Group’s UK subsidiary about $1.4 million and to reimburse Ncell for the cost of a loan.

Axiata UK and Ncell are not required to make any payments under the tribunal’s order.

The tax bill relates to Malaysia-based Axiata acquiring an 80 per cent stake in the Nepali operator in 2016.

A provisional order by the tribunal in December 2019 prevented the government from collecting NPR22.4 billion ($169.4 million) in outstanding capital gains tax.

Axiata UK and Ncell filed a request for arbitration in April 2019, with the country’s Supreme Court later reducing a capital gains tax demand from NPR63 billion to NRP45 billion.

Since Ncell already paid about NPR23 billion, it was ordered pay an additional NPR22 billion.