CGT: Capital Gain Tax
There is political debate going on among fools regarding CGT from selling of Ncell. And it has become political debate among some economically fool media person and personality too.
Use common sense, CGT means capital gain tax.
ask your self, who would gain capital, buyer or seller? its suppose to be obvious, its seller who gains capital while selling so has to pay tax on such gained profit in capital so obviously seller has to pay capital gain tax. not buyer.
BUT COMMON SENSE IS NOT SO COMMON.
but buyer is paying capital gain tax.
Real question should be, why is buyer is paying CGT?
Its simple, cause there was corruption involved among buyer, seller and criminal politicians/bureaucrats.
I believe there were three way sharing of loot of Nepal's revenue among those three criminal parties.
Let's say, CGT suppose to be paid is 100. Seller paid 10 to Nepal govt, buyer kept 30, seller kept 30 and criminal politicians/bureaucrats kept 30.
Since, Ncell has to stay in Nepal, so to save business, not going to jail, they must have paid their share of 30.
Now where is another 60????
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another theory could be, if TeliaSonera was suppose to sell at 100+ 30CGT= 130. but due to corruption- they took only 105, paid 5CGT and bribed 5 to politicians, and sold at 110. And signed a deal to current owner that in case there is more CGT to be paid, current owner has to pay.
And current owner paid only 110+5bribe=115, so current owner got discount amount of 15 (suppose to be paid as CGT), politician got 5 and seller got extra 5, and govt got 5CGT.
- here, instead of seller, buyer is paying CGT cause of corruption and buy/seller must have made a deal that buyer would be paying certain CGT if govt demands (and politicians/bureaucrats must have been a witness).
now, Ncell is saying, they have paid all the CGT they were suppose to pay, so now, if there is and CGT remains, seller-TeliaSonera has to pay and politicians/bureaucrats have to return the bribe money they took.
Remember, its seller who pays CGT not buyer, share investors are suppose to know this, but our idiot friends in media do not even understand what CGT is and they are not asking the right question- why buyer is paying CGT????
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