Kathmandu, December 22
The Supreme Court is set to examine the verdict given by the International Center for the Settlement of Investment Disputes (ICSID) concerning the Ncell tax dispute determined by the Large Taxpayer Office.
In response to a writ petition filed by Ncell, the Supreme Court has directed the submission of the ICSID decision, with the bench of Justices Anand Mohan Bhattarai and Nahkul Subedi recognising the necessity to scrutinise the arbitration decision before concluding the ongoing tax dispute involving Ncell.
The tax dispute, originating on December 21, 2015, following the acquisition of Reynolds Holdings—holding an 80 per cent stake in Ncell—by the Malaysian telecom company Axiata, remains unresolved in court.
In response to a writ petition filed by former secretary Dwarikanath Dhungel and others, the Supreme Court has mandated that Ncell settle tax obligations for the transaction under Section 57 of the Income Tax Act. Consequently, Ncell has complied, paying a sum of Rs 47 billion in taxes.
Following the Supreme Court’s ruling, the Large Taxpayer Office concluded in 2021 that Ncell is obligated to pay an additional Rs 57 billion in taxes. Contesting the legality of this tax assessment, Ncell has submitted a writ to the Supreme Court. In the course of the writ’s hearing, the Supreme Court has declared its intention to examine the decision of the ICSID.
