
Audio By Carbonatix
MTN Group Ltd., Africa’s largest wireless carrier, said it’s received a $773 million back-tax bill, including penalties and interest charges, in Ghana that it plans to fight.
The bill is for the period between 2014 and 2018 and implies that MTN under-declared its revenue in the country by 30%, the company said in a statement on Friday. MTN said it received the notice this week.
“MTN Ghana believes that the taxes due have been paid during the period under assessment and has resolved to vigorously defend MTN Ghana’s position on the assessment,” the company said.
Africa’s largest wireless carriers are increasingly caught up in tax disputes on the continent. MTN was victorious in a conflict in Nigeria in 2020 when the government had to drop a $2 billion claim for back taxes following a 16-month battle. More recently, Vodacom Group Ltd. has been embroiled in a controversial tax demand in the Congo that saw the government seal parts of its offices and freeze its bank accounts.
The Ghana Revenue Authority used a third-party consultant as well as a new methodology, the company said. “MTN Ghana strongly disputes the accuracy and basis of the assessment, including the methodology used in conducting the audit,” the company said.
Florence Asante, a spokeswoman for the GRA, said she couldn’t immediately comment when reached by phone.
Ghana, which lost access to the international capital markets due to its ballooning debt and loan service costs, suspended interest payments on its external debt last month. The nation is trying to restructure its obligations to finalize a $3 billion bailout from the International Monetary Fund.
MTN said in the statement that the GRA had begun an audit of its Ghanaian business in 2019 to look into the “reliability and completeness” of the revenue it declared during the five-year period. The GRA hadn’t issued the unit with any guidelines or standards relating to its new audit methodology, MTN said.
“MTN Group and MTN Ghana will continue to engage with the relevant authorities on this matter and MTN remains resolute that MTN Ghana is a tax compliant corporate citizen,” the company said.
Latest Stories
-
Police arrest 10 over suspected cyber fraud, rescue 9 trafficking victims in Afienya
3 minutes -
Bagbin directs MPs to comply as government bans unauthorised sirens, police escorts
10 minutes -
Delegation from Dagbon informs Otumfuo of the passing of Ya-Na Abukari II
20 minutes -
Five suspects arrested for alleged human trafficking in Kwabenya, 18 victims rescued
22 minutes -
MTN Ghana urges households to embrace fibre broadband as home internet demand rises
34 minutes -
Ipswich Town sign Abdul Fatawu from Leicester City
36 minutes -
Legal battle looms in Ghana as 20-year mining conviction for Wontumi sparks constitutional debate
44 minutes -
99.3% covered, 1,200 infected: Ghana’s HIV blind spot
48 minutes -
US military identifies two soldiers killed in Iranian attack in Jordan
51 minutes -
Police arrest 6 suspected robbers, recover GH¢300k stolen at Portor-Gurumpe highway
58 minutes -
Fire destroys 4 shops near Bolgatanga Main Station
1 hour -
Assembly man, brother remanded over death of 25-year-old driver at New Edubiase
1 hour -
CID arrests 11 in Tema cybercrime operation as two ‘trafficking victims’ become suspects
1 hour -
Wontumi’s last words to me were ‘work hard, bring NPP back to power’ – Palgrave Boakye-Danquah
1 hour -
‘Abrogate the contract, refund deducted funds’ – Sulemana Braimah tells NASPA
2 hours