MTN Group says it strongly disputes a $773 million tax bill from Ghana Revenue Authority (GRA). The largest wireless carrier in Africa says it plans to fight the $773 million back-tax bill, including penalties and interest charges.
The bill is said to be 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 said “MTN Ghana believes that the taxes due have been paid during the period under assessment and has resolved to defend MTN Ghana’s position on the Assessment.”
“MTN Ghana strongly disputes the accuracy and basis of the assessment, including the methodology used in conducting the audit.”
MTN alleges that GRA used a third-party consultant as well as a new methodology. It also added 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.
“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.”
In a related story, the telecoms giant was fined in Nigeria in 2018. The Nigerian subsidiary, MTN Nigeria was accused of failing to pay $2billion in taxes and penalties. MTN however contested and won the case after which it was withdrawn in 2020.
In some quarters, it is thought that this move by GRA is a desperate attempt to raise money for the country as the country’s economy took a drastic downturn in 2022, with the country’s inflation rate rising to 54.1%.
MTN Group is present in 19 countries in Africa and the Middle East.
