Former Ncell CEO Erim Taylanlar could face prosecution after he failed to respond to a letter from the Large Taxpayer’s Office to present himself before the LTO.

The wing under the Inland Revenue Department (IRD) had issued a letter to the then chief executive officer of the telecom service provider on April 20, asking him to present the details of the recently concluded Ncell deal.

The office had cited Section 135 of the Income Tax Act-2002 that says the IRD may avail of powers with respect to issuing summons, recording statements, examining evidences and seeking documents from the officials concerned. Tax officials initiated the move after Ncell, recently acquired by Axiata—a Malaysian telecommunication giant, said that it was unaware of the transfer of its 80 percent stake.

The mobile operator on the same date had written to the LTO, as enquired by the office, to express its “lack of knowledge” about its share transfer to the Malaysian company, claiming that the deal was not applicable to capital gain tax.

Since Taylanlar has not cooperated in the probe and presented himself to the LTO within the stipulated time, according to lawyers, it is considered as an offence.

“Therefore, the LTO can appoint an investigating officer and prosecute the person before the concerned district court,” said a corporate lawyer seeking anonymity. “LTO can even seek Nepal Police’s help to arrest Taylanlar.”  LTO Chief Shova Kanta Poudel said that his office’s next move would be “as per the law”.

The capital gains tax fiasco of the Ncell deal reached a new height after TeliaSonera, the former owner of Ncell, on April 12 formally announced that the divestment was formally completed and that its stakes in Ncell had been officially acquired by Axiata.

In a record deal, Axiata had bought Reynolds Holding, the owner of Ncell, from TeliaSonera at an enterprise value of $1.03 billion.