Ncell transfers Rs 9.97 billion to the government

Kathmandu, 09 May: Ncell a private telecom company in Nepal, transferred Rs 9.97 billion to the state coffers, as per the instructions issued by the government to pay applicable capital gains tax on Ncell buyout deal.

The amount deposited today, as per Ncell, is 15 per cent of the gains made by TeliaSonera while selling Ncell to Malaysian telecom giant, Axiata.

“Yes, Ncell has deposited the amount,” a senior official of the Large Taxpayers’ Office told, on condition of anonymity. “The amount was extended based on tax liabilities estimated by Ncell. We’ll now check whether the assessment is correct and make comments.”

Earlier, the LTO had directed Ncell to deposit 15 per cent of the withholding tax, or the tax deductible at source for capital gains, by today. Another 10 per cent of the gains made from the transaction must be deposited by TeliaSonera.

Although the tax burden on buyout deals does not rest on buyer’s shoulders, Ncell had decided to bear the responsibility to quash rumours that attempts were being made to evade taxes to the tune of tens of billions of rupees.

“Ncell is one of the largest taxpayers in Nepal, and has consistently complied with the laws of the country. It has also exercised the highest standards of governance and compliance pertaining to the fulfilment of tax obligations,” Ncell said in a statement.