KUALA LUMPUR (April 10): Axiata Group Bhd confirmed today the Supreme Court of Nepal (SC) had yesterday (April 9) issued its full written order that tax be collected from Ncell Pvt Ltd and Axiata Investments UK Ltd (Axiata UK) in relation to the indirect transfer to Axiata UK of an 80% stake in Ncell.

Axiata Group said today in a Bursa Malaysia filing that the stake transfer in mobile telecommunication network provider Ncell was through the sale of Reynolds Holdings Ltd by the previous foreign investor, TeliaSonera Norway Nepal Holdings AS, to Axiata UK.

Axiata Group said: "The order states that the Large Taxpayers Office (LTPO) should determine the outstanding tax amount to be paid in relation to the transaction within three months from the date of receipt of the order by the LTPO and that the responsibility to pay tax lies with Ncell and Axiata, the latter who is not a party to the PIL (public interest litigation). The SC also indicated that distribution of dividends and any sale of Ncell shares by anyone should not be granted until the tax obligation is satisfied."

"Axiata and Ncell are reviewing the decision of the Supreme Court. Pending review of the decision by the SC, at this time, Axiata reiterates that it and Ncell have dutifully and responsibly complied with all relevant regulatory and legal requirements in relation to the transaction and acknowledge the order without prejudice to their remedial rights," Axiata Group said.

Axiata Group said the company and Ncell have made significant contributions to the socio-economic development of Nepal. Axiata Group said Ncell directly and indirectly supports over 93,800 jobs and connects over 16.3 million customers across the group's networks.

"We remain committed as long-term investors in the country to further enhance digital connectivity and to improve the lives of all Nepalis.

"We have an exemplary track record of contributing to the development of Nepal and hope that we can continue to build a sustainable business for Ncell for the benefit of the country. As the largest taxpayer, contributing NPR 125.68 billion (US$1.17 billion/about RM4.8 billion) in taxes since fiscal year 2014/2015, we believe that the Government of Nepal will be supportive of our commitment and use our investment as a demonstration of the willingness and openness of Nepal to attract further foreign investment," Axiata Group said.