The Large Taxpayers Office today gave an ultimatum to Ncell to clear its outstanding capital gains tax (CGT) dues within 15 days.
The LTO’s ultimatum to Ncell to clear the dues came on the same day that the tax office received an official letter from an international investment dispute settlement court asking it not to initiate CGT collection process from Ncell.
Issuing an interim order last week, the International Centre for Settlement of Investment Disputes (ICISD) had directed Nepal not to ‘take any steps’ to enforce its decision to collect Rs 22.4 billion in outstanding CGT – including interest and penalties – from the sale of Ncell by TeliaSonera Norway to Axiata UK. The LTO officially received ICSID’s order today, confirmed the LTO officials. Though LTO claimed thagt it will discuss about the ICSID’s letter with the government, it has – contrary to ICSID’s directive – directed Ncell to clear the outstanding CGT dues within two weeks.
Based on the verdict of the Supreme Court, the LTO had asked Ncell to deposit Rs 22.44 billion remaining CGT dues within 15 days on December 8. However, Ncell did not clear its dues within the given time forcing the LTO today to give ultimatum to deposit Rs 22.6 billion tax dues – including interest and late fees – to telecom service provider.
The government will take necessary action on the basis of the Income Tax Act, if Ncell fails to clear dues within the time, the letter reads, adding that the LTO will take action based on provisions mentioned from Section 104 to 109 of the Income Tax Act.
However, experts said that the interim order issued by ICSID is obligatory for countries that are its members based on previous tribunals.
The LTO’s ultimatum to Ncell to clear the dues came on the same day that the tax office received an official letter from an international investment dispute settlement court asking it not to initiate CGT collection process from Ncell.
Issuing an interim order last week, the International Centre for Settlement of Investment Disputes (ICISD) had directed Nepal not to ‘take any steps’ to enforce its decision to collect Rs 22.4 billion in outstanding CGT – including interest and penalties – from the sale of Ncell by TeliaSonera Norway to Axiata UK. The LTO officially received ICSID’s order today, confirmed the LTO officials. Though LTO claimed thagt it will discuss about the ICSID’s letter with the government, it has – contrary to ICSID’s directive – directed Ncell to clear the outstanding CGT dues within two weeks.
Based on the verdict of the Supreme Court, the LTO had asked Ncell to deposit Rs 22.44 billion remaining CGT dues within 15 days on December 8. However, Ncell did not clear its dues within the given time forcing the LTO today to give ultimatum to deposit Rs 22.6 billion tax dues – including interest and late fees – to telecom service provider.
The government will take necessary action on the basis of the Income Tax Act, if Ncell fails to clear dues within the time, the letter reads, adding that the LTO will take action based on provisions mentioned from Section 104 to 109 of the Income Tax Act.
However, experts said that the interim order issued by ICSID is obligatory for countries that are its members based on previous tribunals.
No comments:
Post a Comment