Posted by AxiataCorpComms > 2019-02-08 13:05 | Report Abuse

Dear Editor, we're sharing below Axiata Group Berhad's response to news coverage on this matter:

Media Statement in Response to Nepali News Reports on the Decision by the Supreme Court of Nepal in Relation to CGT Claim

Kuala Lumpur, 7 February 2019 – Axiata Group Berhad (“Axiata” or “the Group”) refers to the various articles in relation to the decision by the Supreme Court of Nepal on two writ petitions by NCell Private Limited (“Ncell”) and Reynolds Holdings Limited (“Reynolds”), and two Public Interest Litigations (“PIL”) brought against various parties in relation to the Capital Gains Tax (“CGT”) claim following the completion of the sale of Reynolds to Axiata Investment (UK) Limited (“AXIATA UK”) on 12 April 2016 (the “Transaction”).

Reynolds is the 80% parent company of Ncell, formerly owned by Telia Company, a large European telecommunications group (the “Seller”).

The Supreme Court had in its ruling on 6 February 2019, dismissed both the writ petitions by Reynolds and Ncell, and one of the PIL. However, Axiata understands that the Court has ruled in favour of the PIL filed by Mr Dwarikanath Dhungel and others broadly pleading that the onus of CGT is on Ncell, Reynolds and Axiata UK.

None of the Axiata parties to the litigation has received the judgment and order of the Supreme Court following its ruling, nor does the Group have any details of what was ordered by the Supreme Court.

Ncell, Reynolds, and Axiata UK were given the full clearance by the Large Tax Payers Office of Nepal [“LTPO”] of its obligations to withhold any CGT payment on behalf of the Seller in relation to the Transaction via the letter from LTPO dated 4 June 2017, following the full and final payment made by Ncell, albeit under protest on the basis that CGT is not applicable on offshore transactions and even if applicable, any shortfall on payment is the responsibility of the Seller.

Axiata will provide further updates upon receiving the order of the Supreme Court.


-Ends-


Issued By:
Corporate Communications,
Axiata Group Berhad
Email: info@axiata.com