KATHMANDU: Nepal has won the case filed by Axiata Group Berhad, the parent company of Ncell, in the International Center for the Settlement of Investment Disputes (ICSID) against the Government of Nepal regarding the tax dispute in Nepal.
In order to resolve the capital gain tax dispute on the sale of shares, Axiata filed a petition against the Inland Revenue Department of Nepal in ICSID, an international investment dispute settlement body established under the auspices of the World Bank.
ICSID is the center for handling investment disputes under the World Bank Group.
The capital gains tax imposed by the government on Ncell is against international laws and treaties and Ncell requested an international body to mediate.
According to government data, when the telecommunication company Ncell was sold by the Swedish company TeliaSonera to the Malaysian company Axiata in 2072, the profit was Rs 1 trillion 43 billion.
The Director General of the Internal Revenue Department, Dirgaraj Mainali, stated that if interest is added at the current rate of 15 percent, Ncell will have to pay an additional Rs 45 billion.
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