JAN. 17 2017 (The Conway Bulletin) — Telia Company, the Swedish telecoms company, accused the Tajik government of posting a bogus tax claim against its Tajikistan-based subsidiary Tcell.
In a statement, the head of Telia’s Eurasia division, Emil Nilsson, said that the tax authorities in Tajikistan had handed Tcell a claim for May 2015 to June 2016 of 155m somoni ($19.6m) — more than the company’s entire revenue for 2015.
“We are very concerned with the situation which we believe is totally unacceptable,” Mr Nilsson said.
Central Asia governments have previously tried to raise revenue by slapping large fines for tax violations on Western companies. And this is exactly what Telia, in its abrupt statement, said was the scenario currently playing out with the Tajik authorities.
“The Tajik operator Tcell has appealed what is considered to be an illegal tax claim,” it said in the statement entitled ‘Telia appeals illegal tax claims in Tajikistan’. “The authorities in Tajikistan are basing their tax claim on revenue that Tcell has never generated, so called ‘un- realised revenue’.”
The Tajik authorities may feel that Tcell is vulnerable. Telia is trying to offload its businesses in Central Asia and the South Caucasus after a corruption scandal in Uzbekistan was uncovered that tarnished Telia’s global image and damaged Central Asia’s reputation for governance.
In September 2016, Telia agreed to sell its 60% stake in Tcell to the Aga Khan for $39m. The Aga Khan already owns 40% of the company.
In its statement, Telia said that it had expected the deal to be signed off by the Tajik authorities by the end of 2016. This has been delayed, though, without clear reason, Telia said.
The Tajik authorities have not commented on either the tax-linked fine or the delay in granting permission for Aga Khan to buy Telia’s stake in Tcell.
Tajikistan’s economy has been hit hard by a recession in Russia, making finding potential buyers for Tcell difficult.
ENDS
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(News report from Issue No. 313, published on Jan. 20 2017)