Nepal’s Large Taxpayers Office is seeking the CGT, including interest and penalties, in connection with TeliaSonera Norway Nepal Holdings AS’ sale of 100% equity interest in Reynolds Holdings Ltd by Axiata UK in 2016.
In a statement today, Axiata Group Bhd said the provisional measures order also restrained the government of Nepal from taking any step that would alter the status quo among Axiata UK, Ncell and Nepal or aggravate the present dispute.
Axiata said its UK subsidiary and Nepal mobile unit would argue, among others, the act of imposing CGT in connection with the transaction contravened Nepal’s international law obligations under a bilateral investment treaty (BIT), signed in 1993 by Nepal, the UK and Northern Ireland governments for the promotion and protection of investments.
“Axiata UK and Ncell will seek remedies, including restitution of sums already paid, a permanent injunction against further attempts to collect CGT from Ncell in connection with the transaction and damages for all losses suffered in consequence of Nepal’s unlawful conduct,” it said.
Axiata said it and Ncell had made significant contributions to the socio-economic development of Nepal.
As the country’s largest taxpayer, Ncell has contributed 210.68 billion rupees (RM7.63 billion) in taxes as of last fiscal year 2018/2019 since its inception.
Both companies “remain fully committed to serving their customers in Nepal and will take all available actions to avoid any disruptions to services and operations in consequence of the dispute”, Axiata said.