|
|
|
According to major newspaper headlines since the announcement in December 2015 that TeliaSonera was selling its stake in Ncell in the biggest and most complicated corporate deal, the entire divestment process had baffled the number crunchers, with questions lingering as to what happens with the Capital gains tax (CGT) of the Swedish-Finnish telecom operator.
TeliaSonera on 2016 April 12 formally announced that the divestment was formally completed and that its stakes in Ncell had been officially acquired by Axiata, a Malaysian telecom giant.
Ncell, now under Axiata, a couple of days back in april wrote to Large Taxpayer’s Office (LTO), stating it is unaware of its share transfer to Malaysian company, and hence is not liable to CGT, in a clear indication that it will not pay the applicable tax to the government. Ncell was responding to a letter by LTO sent to Ncell last week, in which the telecom operator was asked to submit the details of the share divestment and pay the applicable CGT. A source at the Ministry of Finance say Ncell replied to LTO a couple of days ago. In a press release, Axiata had announced the acquisition [of Ncell], and the Ncell website included the trademark of Axiata.
In a record deal, Axiata had bought Reynolds Holding, the owner of Ncell, from TeliaSonera at an enterprise value of USD 1.03 billion. Reynolds Holding is the TeliaSonera’s wholly-owned subsidiary, registered at Saint Kitts and Nevis, a tax haven. The Malaysian company had also acquired 19.6 percent stake of Visor Group of Kazakhstan to have 80 percent stake in Ncell. Though TeliaSonera formally announced on April 12 that the divestment had been formally completed, it had said nothing on CGT. The issue of CGT is being hotly debated since TeliaSonera announced in December last year that it would divest 60.4 percent of its stake in Ncell to Axiata.
On 2016 April 8, the Parliamentary Finance Committee had called a meeting to discuss the Ncell deal. However, the meeting was cancelled at the last hour. Sources said the meeting was cancelled following political pressure from the highest level. Interestingly, four days later, TeliaSonera announced that the divestment had been completed. The investment made in Nepal by TeliaSonera was through Norwary-based TeliaSonera Norway Nepal.
In a complex ownership structure, TeliaSonera Norway Nepal had 100 percent stake in Reynolds Holding which owns 80 percent stake in Ncell.
Even the government authorities were not sure whether the government should levy CGT on the acquisition of Ncell by Axiata, as it was off-shore transaction even though senior officials at the Ministry of Finance were in favour of levying CGT.
According to tax officials, if CGT was imposed, 25 percent of the deal’s profit could go to the state coffers. Government sources said attempts were being made to avoid CGT in the 80 percent share transfer as the deal was between two non-Nepali companies that was signed abroad.[12]
However, Neeraj Gobinda Shrestha, the local partner, has already paid Rs. 2.83 billion in CGT for the sale of 20 percent of the shares to Sunivera Capital Venture.
The issue of CGT was also discussed in the Parliamentary Development Committee. On January 26, the committee had sought response from the Inland Revenue Department, Department of Industry, Ministry of Information and Communication Technology, Office of the Company Registrar and the Nepal Telecom on various issues.
At the meeting, lawmakers had expressed suspicion that the price for the 80 percent foreign stake was maintained higher assuming that no tax would be levied on that transaction, and the price for the domestically-held shares—on which the tax is applicable—was maintained lower to evade tax. The company was also charged of corrupting high government officials for the success of the evasion.
As of march 2017 many protests were being held in various places throughout country.
|
|
|
|
Write Comment Below:
Disclaimer: Please note, this is an online news portal, All of these images/videos found here from 3rd party video/image hosting sites such as YouTube.Com, Vimeo.Com, DailyMotion.Com, Blip.Tv, We do not host any videos and some photos. Please contact to appropriate video/image hosting site for any content removal.
Abroad Adventure Travel In Nepal
Have you put any kind of expected directly into the finest areas to go with regards to abroad experience voyaging? Simply abroad adventure going in Nepal will surely give you these sorts of chances so if this is not on your agenda of practical regions to go to yet after that right now is an ideal opportunity to place it on there!
In Nepal your abroad trip flying out will be astounding. At the point when abroad adventure heading out takes you to Nepal you will unquestionably have the likelihood to see the majority of the great and unique lakes and furthermore forests and you could likewise put days or weeks outdoors in their forests with a particular review. This should be at the highest point of your abroad trip voyaging area posting for certain!
When you go into abroad adventure voyaging you are mosting liable to need to bring your own one of a kind materials, no less than a couple of them. You're treking boots are an unquestionable requirement, and additionally exceptional coats and also such. These could basically ration your life when you are around in the wild so recall that them when you are stacking for your abroad adventure voyaging.
When you acquire to Nepal you will absolutely find that the most conspicuous of all abroad excursion going there is climbing. You will generally run climbing with a group of people, a hefty portion of them site guests in abroad adventure voyaging.
They will positively normally additionally carry your sack for you when you go on this sort of abroad experience voyaging. This abroad excursion voyaging work force will surely similarly be the people that get ready for you every day and in addition that built up and furthermore harm down the camp when called for.
There is no far superior area to run with your abroad excursion flying out contrasted with Nepal. It is a wonderful and furthermore suitable area where you could come back to nature and furthermore welcome the wonders of the globe by means of abroad experience voyaging.
