22 Apr 2019
KUALA LUMPUR - Axiata Group Berhad (“Axiata” or the “Group”) confirms the submission of a writ petition by its subsidiary company, Ncell Private Limited (“Ncell” or the “Company”) against the Large Taxpayer Office's ("LTPO") letter dated 16 April 2019. The LTPO's letter was issued to the Company as a follow-up to the full written Order of the Supreme Court ("SC") on 9 April 2019, which relates to its oral Order dated 6 February 2019 on a public interest litigation (“PIL”) filed by a group of Nepali individuals (Case No. 074-WO-0475).
Ncell had on 21 April 2019 filed a Writ of Certiorari, Prohibition and Mandamus to the SC against the LTPO, Inland Revenue Department of Nepal and the Ministry of Finance of Nepal (“Ncell Application”). The Ncell Application was accepted by the SC today.
Ncell’s writ to the SC asserts that the LTPO has not complied with the procedure as stated in the country’s Income Tax Act for making a tax assessment and has instead used the SC’s Order dated 9 April 2019 to substitute the amount that the LTPO had previously assessed for TeliaSonera Norway Nepal Holdings AS (“TeliaSonera” or the “Seller”) and levied it on Ncell.
The SC’s full written Order on 9 April 2019 had stated that the LTPO should conduct an assessment to determine the outstanding tax amount to be paid in relation to the indirect transfer of an 80% stake in Ncell by the Seller to Axiata Investments (UK) Limited through the sale of Reynolds Holdings Limited (the “Transaction”), within three (3) months from the date of receipt of the SC Order by the LTPO. The SC’s Order also stated that the responsibility to pay tax lies with Ncell and Axiata.
Subsequently on 16 April 2019, the LTPO issued a written order to Ncell, stating that the TeliaSonera assessment, in relation to the Transaction, has been transferred to Ncell and that the balance amount of the capital gains tax arising from the Transaction due is NPR39.06 billion. Ncell has been ordered by the LTPO to deposit the said amount within seven (7) days, or by 22 April 2019.
About Axiata
As one of the leading telecommunications groups in Asia in pursuit of its vision to be the New Generation Digital Champion by 2022, Axiata has transformed itself from a holding entity with a portfolio of pure-play mobile assets into a Triple Core Strategy driven business focusing on Digital Telco, Digital Businesses and Infrastructure.
Within ASEAN and South Asia, the Group has controlling stakes in market-leading mobile and fixed operators in the region including ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia and 'Ncell' in Nepal. Axiata is actively spearheading efforts to transform its mobile-centric operations into digital converged companies.
Axiata’s digital businesses are focused on three verticals namely Digital Financial Services (‘Boost’), Digital Advertising (‘ada’) and Digital Platform (‘APIgate’) in the global market.
‘edotco’, the Group’s infrastructure company, operates in six countries to deliver telecommunications infrastructure services, amassing approximately 27,500 towers. Presently the 12th largest independent tower companies globally, it aims to be one of the top regional telecommunications tower companies and is committed to responsible and sustainable business operations.
As a committed and long-term investor, and in line with its sustainability goals, the Group actively supports and drives young talent development; disaster response and recovery; as well as green initiatives. Axiata’s broader goal of Advancing Asia aims to piece together the best in the region in terms of innovation, connectivity and talent. For further information on Axiata visit www.axiata.com
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