SC orders for paying taxes on merger, acquisition or FPO issuance

KATHMANDU, DECEMBER 14: The Supreme Court (SC) has ruled that commercial banks and insurance companies should pay taxes while going for a merger, acquisition or issuing an FPO (Further Public Offer).

A  constitutional bench of the apex court comprising Chief Justice Bishwombhar Shrestha along with four other justices-Anand Mohan Bhattarai, Saoana Malla Pradhan, Sushmalata Mathema and Kumar Regmi- made such a ruling while responding to a writ filed by 16 commercial banks and two insurance companies.

The very writ had asked for exempting the taxes on the income earned through the merger or acquisition of companies or through the issuance of FPO at a premium rate.

The State has to collect a total of Rs 40  billion as income taxes  from the banks  and insurance companies, according to the Office of Auditor General