MTN out of the woods as Ghanaian tax authorities withdraw $665 million tax liability case

MTN has introduced that Ghanaian tax authorities have withdrawn the tax liability case that they had leveled in opposition to the pan-African telco on 13 January, 2023. The Ghana income authority had slapped MTN Ghana with a GHS8.2 billion (~$665 million) high quality, citing unpaid again taxes.

In a press release printed on the Johannesburg Stock Exchange information service (SENS) of February 3,2023, MTN said that the withdrawal got here after in depth discussions between itself and the related Ghanaian authorities.

“Shareholders are advised that following extensive and productive discussions held during this 21-day period between MTN Ghana, MTN and relevant authorities in Ghana, the GRA has on 03 February 2023 fully withdrawn the [tax liability] assessment,” the assertion learn.

According to the Ghanaian authorities at the time, the invoice in opposition to MTN was for unpaid taxes for the interval between 2014 and 2018 throughout which era the telco had allegedly under-declared its income in its Ghana operations by as a lot as 30%.

Following the announcement of the invoice, MTN has denied any wrongdoing on its half, stating that, “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 Ghana Revenue Authority (GRA) then briefly withdrew the liability evaluation to offer a 21-day timeline to permit for additional engagements between the events which led to the case being dismissed at this time.

Major telcos throughout the continent have been embroiled in tax bother in current occasions. In December 2022, Vodacom noticed their places of work in the Democratic Republic of Congo sealed as a outcome of failure to pay a $243 million tax invoice and MTN itself received a $2 billion tax case caused by Nigerian authorities in 2019.