An 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.
The tax bill relates to Malaysia-based Axiata acquiring an 80 per cent stake in the Nepali operator in 2016.
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’s demand.
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.
In April Ncell, the second largest mobile operator in Nepal, filed a petition with the country’s 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.
It later filed a request for arbitration with the International Centre for the Settlement of Investment Disputes.
In August, the Supreme Court reduced the amount to NPR45 billion. Since Ncell already paid arout NPR23 billion, it was required to pay an additional NPR22 billion.Subscribe to our daily newsletter Back