15 Days Notice To TeliaSonera To Clear All Tax
The Large Taxpayer’s Office (LTO) Lalitpur has asked Swedish firm TeliaSonera to clear all its tax dues from the Ncell buyout deal to the government within 15 days.
In December 2015, Ncell changed from TeliaSonera to Axiata. TeliaSonera provides communication services to millions of people to be connected and communicate, do business and be entertained. TeliaSonera is a European telecommunication provider sold its shares worth USD 1.03 billion to the Malaysia-based Asian telecommunication giant.
The government had said that 25 percent of the profit made from the sale of Ncell should be deposited as capital gains tax. TeliaSonera is yet to make the payment. Out of the 25 percent, 10 percent should be paid by the TeliaSonera while 15 percent should be paid by a company that was Ncell.
The notice warns that it will be forced to recover the tax by taking all or any of the procedures prescribed by section 104-111 of the Income Tax Act 2002 if the company fails to pay the amount within 15 days.Of this amount, 15 percent is left at the company that was sold while the remaining 10 percent should be paid by the seller.
The notice also states that the office had written to TeliaSonera about the payment due on June 30, 2017, and they not had paid the tax due despite it.
TeliaSonera had been given a deadline of January 2, 2018, to pay the capital gain tax of Rs. 65.40 billion including interest and fines. But it has failed to do so.
Though LTO has calculated due tax of TeliaSonera at Rs 65 billion, tax liability to the Swedish company will be lower as Axiata has already paid 15 percent of the applicable CGT of the Ncell deal on behalf of TeliaSonera.
Ncell has already paid its 15 percent which amounts to Rs. 23.57 billion in two installments as the tax on the profit generated through the sale of Ncell.