MTN Ghana is vehemently disputing an alleged tax infringement imposed by the Ghana Revenue Authority (GRA) on the company between 2014 and 2018.
According to the leading telecommunications company, it is a tax-compliant corporate citizen, and the GRA’s tax liability notice of GH8,209,603,842.14 (US$773 million) is unacceptable.
Penalties and interest charges are included in the assessment of $8,209,603,842.14.
“In this regard, the GRA infers that MTN Ghana under declared its revenue by more than 30% over the five-year period 2014 to 2018, based on the base component of the assessment (that is, excluding penalties and interest) on MTN Ghana’s analysis,” it said in a statement.
“The GRA audited MTN Ghana from 2014 to 2018, employing a third-party consultant and a new methodology based on call data records (CDR), recharges, and other data.
“MTN Ghana strongly disputes the accuracy and basis of the Assessment, including the methodology used in conducting the audit.
“MTN Ghana believes that taxes due have been paid during the assessment period,” it said.
MTN Ghana believes that the taxes due were paid during the assessment period.
MTN Group and MTN Ghana will continue to engage with the relevant authorities on this matter, according to the statement, and MTN remains steadfast that MTN Ghana is a tax-compliant corporate citizen.
MTN Ghana would like to reassure its shareholders and other stakeholders once more that it is a responsible company committed to transparency, good corporate governance, and compliance.
MTN Ghana is one of Ghana’s largest taxpayers.
MTN Ghana is one of Ghana’s largest private sector taxpayers, having been recognised numerous times for its contributions to the GRA’s revenue mobilisation efforts.
The GRA has also concluded multiple tax assessments on MTN Ghana satisfactorily over many years and has presented MTN Ghana with various taxpayer awards in recognition of its contribution to the country’s fiscal development.
MTN Ghana thanked the GRA for its assistance throughout the process, particularly for allowing us to temporarily withdraw the Notice of Assessment in order to resolve this matter amicably.
The GRA began an audit of MTN Ghana in 2019 with the goal of providing assurance on the dependability and completeness of revenues declared by MTN Ghana for the purpose of tax computation for the period 2014-2018.
The GRA had not previously issued any guidelines or standards to MTN Ghana regarding the new CDR sequence-based methodology used for the audit.
After consultations and discussions, MTN Ghana, MTN Group, the Ministry of Finance of the Republic of Ghana, and the GRA agreed to an independent review by a global professional services firm in May 2021.
MTN Ghana has fully cooperated with the GRA in this independent review, which was commissioned in September 2021.
The independent review concluded that the conclusions reached by the GRA’s third-party consultants as the basis for the assessment could not be supported.
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