The Large Taxpayers’ Office (LTO) has urged the private telecom firm Ncell to deposit Rs 22.44 billion of the outstanding capital gains tax (CGT) in its buyout deal.
Based on the entire judgment of the Supreme Court (SC) of November 21 which had set Rs 21.1 billion tax liability on Ncell, the LTO has determined Rs 22.44 billion including fines as the imminent CGT and urged the company to deposit the given amount in the government coffer within December 19.
Jhalak Ram Adhikari, the chief tax administrator at the LTO informed that the outstanding tax liability of Ncell has been estimated based on the apex court’s decision and they have dispatched a letter to Ncell last Thursday urging it to pay Rs 22.44 billion of the outstanding tax.
The full text of SC had subdued the CGT liability determined by the LTO on Ncell which was worth Rs 62.63 billion citings that inflicting a further 50 percent fine on relevant CGT liability on Ncell was not as per the law.
Considering Ncell had paid Rs 23.57 billion as CGT to the government on June 4, 2017, LTO had determined Rs 39.06 billion as the outstanding CGT liability of Ncell. Though, Ncell had moved the Supreme Court seeking a stay on LTO’s decision, claiming that the office had disrupted the due process while reassessing Ncell’s CGT liability. Initially, Ncell had objected to LTO’s judgment to inflict a 50 percent fine on the appropriate tax amount.
Consequently, the apex court had ruled in Ncell’s favor on August 25, commenting that it could be assumed to meet its CGT liability from February 6, when the SC gave its ruling, and not the date the LTO had mentioned for imposing CGT on Ncell.
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