Kathmandu. The case being heard in the International Court was submitted by the mobile service provider Ncell Asiata Limited, who sought 348 million US dollars (more than Rs.
On March 7, the entire procedure in this case was concluded by the tribunal (arbitration) established by the World Bank’s ICSID Center for the International Settlement of Investment Disputes.
The majority stake in Reynolds Holding Limited, which holds 80% of the shares in Ncell, was sold by the Swedish firm TeliaSonera to the Malaysian firm Aziata in 2016. The Nepalese government received 44 billion rupees in profit tax from the same purchase and sale.
The Government of Nepal was sued in arbitration by Aziata Investments UK Limited and Ncell Private Limited for collecting capital gains tax in breach of the bilateral tax agreement. It is based on the 1993 bilateral investment agreement signed by Nepal and the UK.
On October 18, 2019, ICSID established a tribunal to address the complaint. Dutch Albert Jan van den Berg on behalf of Ncell and American Paul Friedland on behalf of Nepal are arbitrators in the court presided over by South Korean Jung Ki.
The decision in this case is still pending. Within the following 120 days, the arbitration’s ultimate ruling is anticipated. If Ncell wins, the Nepali government will be required to repay more than 45 billion rupees that were paid in capital gains tax.
Advocates Surya Prasad Subedi (UK), Foley Hong (USA), and Chhetri & Associates (USA) from the Ministry of Law, Justice, and Parliamentary Affairs (UK) represented the Government of Nepal in the arbitration. Herbert Smith Freehills of London and Hong Kong and Alison Macdonald of the UK represented the claimant in the arbitration.
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