KUALA LUMPUR: Axiata Group Bhd says its Nepal subsidiary Ncell Private Ltd has been fully cleared of the capital gains tax (CGT) payment after it made a further deposit of 13.6 billion Nepalese rupees (RM563.63mil) to the Nepalese tax department, also known as the Large Taxpayers Office (LTPO).
It was responding to a news report on Tuesday that “Nepal’s central bank intends to bar Axiata from repatriating its dividends”.
“Axiata wishes to clarify that it has not received any official communication or direction from Nepal’s central bank or relevant Nepali authorities on the matter,” it said in a statement to Bursa Malaysia on Wednesday.
On June 5, 2017, the LTPO, had in its confirmation letter to Ncell, “conclusively certified and acknowledged” that Ncell is fully cleared of CGT payment with the further advance deposit of 13.6 billion rupees paid to the LTPO as directed by the agency.
“Axiata is confident that the Government of Nepal will not discriminate and contradict the aegis of the Bilateral Investment Treaty by blocking Axiata from repatriating its dividends rightfully due to the group as foreign investor in the country,” it said.
On June 5, Axiata had also stated despite Ncell not being a party to the transaction and it neither having received nor made any payments in relation to the transaction, the deposit and closure of this matter was part of its commitment to continue serving Nepal.
“Ncell has consistently complied with the laws of the country, and has on all occasions exercised the highest standards of governance and compliance pertaining to the fulfilment of its tax obligations,” Ncell’s managing director Simon Perkins was quoted saying then.