Axiata seeks arbitration in Nepal tax case

30 Apr 2019

Nepalese mobile operator Ncell has filed a request for arbitration with the International Centre for the Settlement of Investment Disputes regarding the NPR39.06 billion (USD347.8 million) capital gains tax bill levied by the country’s Large Tax Payments Office (LTPO). As previously reported by TeleGeography’s CommsUpdate, Ncell was ordered to pay the capital gains tax following Malaysian telecoms group Axiata’s acquisition of an 80% stake in the mobile operator from Sweden’s Telia Company in 2016. Axiata argues the LTPO failed to comply with the country’s Income Tax Act for making a tax assessment and recently obtained a temporary stay order ahead of a hearing on 6 May.

Nepal, Axiata, Ncell Axiata