Axiata Group Bhd’s subsidiary, Ncell Private Ltd, has received a letter from the Large Taxpayers Office (LTPO) in Nepal on the matter of outstanding capital gains tax amounting to 39.06 billion Nepalese rupee (RM1.45 billion).
The tax to be collected from Ncell is in relation to the indirect transfer to Axiata Investments UK of an 80% stake in Ncell through the sale of Reynolds Holdings Ltd by the previous foreign investor, TeliaSonera Norway Nepal Holdings AS. Ncell has been ordered to deposit the said amount within seven days, or by Apr 22, 2019, Axiata noted in an exchange filing yesterday.
“Axiata and Ncell are currently reviewing the Letter and are considering appropriate course in relation to the letter.
To date, Axiata and Ncell have dutifully and responsibly complied with all relevant regulatory and legal requirements in relation to the transaction and acknowledge the Order without prejudice to their remedial rights,” the company noted.