Axiata’s share price falls 4.87% on RM2.16b tax bill
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Axiata Group Bhd’s share price fell 4.87% at mid-day after the group and its majority owned subsidiary Ncell Pte Ltd were ordered by the Nepal Supreme Court to pay capital gains tax of 61 billion Nepalese rupees (RM2.16 billion) for the Ncell buyout deal. At 12.30pm, Axiata was the eighth loser on Bursa Malaysia, trading at RM3.71 with 7.03 million shares changing hands.
The Himalayan Times yesterday reported that Axiata had been hit with the tax bill, which excludes late fees and fines, for its US$1.36 billion purchase of Reynolds Holdings Ltd, which has 80% stake in Ncell, in 2015.
The publication cited the Nepalese Large Taxpayers Office chief as saying it would only initiate the process of collecting the tax amount once it gets a copy of the tax verdict.
Questions & Answers
Q.What is the total amount of the tax bill issued to Axiata and Ncell?
What is the total amount of the tax bill issued to Axiata and Ncell?
The total tax bill issued is 61 billion Nepalese rupees, which translates to RM2.16 billion. This amount does not include any potential late fees or fines.
Q.When did Axiata acquire its stake in Ncell?
When did Axiata acquire its stake in Ncell?
Axiata acquired Reynolds Holdings Ltd, which holds an 80% stake in Ncell, in 2015. This acquisition was valued at US$1.36 billion at the time.
Q.When will the tax collection process begin?
When will the tax collection process begin?
The Nepalese Large Taxpayers Office chief stated that the process of collecting the tax amount will only commence once they receive an official copy of the tax verdict.
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