KUALA LUMPUR (Feb 7): NCell Pte Ltd and its major shareholder Axiata Group Bhd have been ordered to pay capital gains tax amounting to 61 billion Nepalese Rupees (about RM2.16 billion), excluding late fees and fines, for the Ncell buyout deal, according to a Feb 6 report by The Himalayan Times.

The report stated that the verdict that was issued by the grand full bench of the apex court has put an end to the years-long controversy over who should foot the tax bill following the sale of Ncell by Sweden-based Telia Sonera to Axiata.

Large Taxpayers Office (LTO) chief Dhani Ram Sharma was quoted as saying that the court order had paved the way for the tax authority to collect the outstanding capital gains tax dues from Ncell and Axiata.

"Once we get the copy of the verdict, we'll initiate the process of collecting the due tax amount by writing letters to both Ncell and Axiata," Sharma said.

The Ncell buyout deal was subject to capital gains tax of around Rs 61 billion. “But the two companies may have to pay around 66 billion rupees in taxes if late fees are factored in,” Sharma told The Himalayan Times.

The news report stated that Ncell has already paid tax instalments totalling Rs 21 billion.

“Despite this, we’ll ask the telecommunications giant to deposit the entire Rs 66 billion. We’ll deduct Rs 21 billion only after Ncell and Axiata file a formal application demanding reduction in the tax bill,” Sharma said.

Axiata had, in December 2015, bought an 80% stake in Ncell for US$1.4 billion from TeliaSonera UTA Holdings BV and SEA Telecom Investments BV.

Axiata shares closed down 12 sen (2.98%) to RM3.90 today, for a market capitalisation of RM35 billion.