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Monday, April 22, 2019

Ncell moves SC against LTO’s decision

This rendering image shows Supreme Court in the background of the Ncell centre and Large Taxpayer Office. Image: THT

Kathmandu, April 22

Ncell Pvt Ltd today moved the Supreme Court against Large Taxpayer Office and others, claiming that it needed to pay a capital gains tax of only Rs 14.5 billion to LTO, and not Rs 39.06 billion as determined by LTO for the sale of its shares to Axiata Investment UK Limited.

The Ncell move comes on the last day of the seven-day deadline served by LTO to Ncell to deposit CGT.

The Department of Inland Revenue  had initially decided that TeliaSonera needed to pay Rs 60 billion CGT, but once the SC ruled that the CGT liability rested with Ncell, the DRI, after deducting 15 per cent CGT paid in advance by Ncell, including late fees, decided that Ncell needed to pay Rs 39.06 billion.

LTO had sent a letter to Ncell on April 16 telling it to pay a revised CGT of Rs 39.06 billion.

Ncell argued that LTO violated due process while reassessing Ncell’s tax liability, as it did not give it a chance to present its argument as provisioned in the Income Tax Act.

Ncell had paid Rs 21.54 billion CGT in advance to LTO and   Rs 2 billion as late fees.

Ncell further argued that LTO had no power to levy tax on Ncell for the period preceding February 6, the day the SC decided that the CGT liability rested with Ncell and not TeliaSonera.

Ncell also argued that the SC had, in its February 6 decision, not ordered Ncell to pay any fees
or interests.

Ncell stated that 25 per cent CGT should apply only to the sale price and therefore, LTO should levy only Rs 14 billion   CGT on it after deducting Rs 21 billion that it had already paid to LTO.

It also urged the apex court to stay LTO’s decisions to levy Rs 39.06 billion CGT on it.

Corporate lawyer Senior Advocate Gandhi Pandit said if the SC stayed LTO’s decision, Ncell would benefit, otherwise it may lose its right to appeal LTO’s decision at Revenue Tribunal. “If Ncell loses its right to appeal LTO’s decision, it will have to pay the amount determined by LTO,” he added.



from Business – The Himalayan Times http://bit.ly/2GA8dr7

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