Ncell respects ICSID tax dispute ruling
Ncell has respected the decision of the International Center for the Settlement of Investment Disputes (ICSID) in the tax dispute case.
Ncell issued a statement saying that it respects the decision of the tribunal and is consulting with its legal advisors regarding the decision.
“Aziata respects the tribunal’s decision and is consulting with its legal advisors regarding the decision,” the statement said. Aziata thanks ICSID and all the participants involved in the process and will continue to engage constructively with the Government of Nepal.
The International Center for the Settlement of Investment Disputes (“ICSID”) submitted a request for arbitration in relation to the application made by Aziata UK against Nepal regarding the capital gains tax imposed by Nepal when it indirectly acquired (business) 80 percent of Ncell shares in 2016.
The tribunal formed in accordance with Article 37(2)(b) of the ICSID Convention has given its decision on May 26 rejecting the claims made by Asiata UK and Ncell. According to Ncell, the tribunal has indicated in its decision that Nepal will not be able to demand any tax, duty, fine or interest related to this transaction.
Nepal has also been ordered to pay a certain amount to Aziata UK and Ncell due to Nepal’s failure to comply with the tribunal’s order at the initial stage of the arbitration process. This amount includes about 1.4 million US dollars to repay the loan taken by Aziata and Ncell. According to this decision, Aziata UK and Ncell do not have to pay any amount, Ncell said.
As one of the biggest taxpayers in the country, Ncell has contributed 2 trillion 83 billion rupees in taxes and miscellaneous fees since its establishment in the last fiscal year 2078/79. Ncell has directly and indirectly provided employment to more than 25 thousand people and connected more than 16 million customers through its network.
As part of its professional social responsibility, Ncell has invested more than 1 billion 750 million in various projects of education, health, and environment identified as important for the nation.
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