CEO of MTN Ghana Mr. Selorm Adadevoh delivering a speech during the launch of MTN Bright Scholarship Reloaded
MTN Ghana is strongly disputing an alleged tax infringement placed on the company by the Ghana Revenue Authority (GRA) between 2014 and 2018.
According to the leading telecom firm, it is a tax-compliant corporate citizen and the tax liability notice of GH¢8,209,603,842.14 (US$773 million) issued against it by the GRA is unacceptable.
The assessment of ¢8,209,603,842.14 includes penalties and interest charges.
“In this regard, from the base component of the assessment (that is, excluding penalties and interest), on MTN Ghana’s analysis, the GRA infers that MTN Ghana under declared its revenue by more than approximately 30% over the 5-year period 2014 to 2018”, it said in a statement.
“The GRA audited MTN Ghana for the period 2014-2018, using a third-party consultant as well as 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 period under assessment”, it explained.
MTN Ghana believed the taxes due have been paid during the period under assessment.
The statement further 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.
Again, it said MTN Ghana would like to further assure its shareholders and other stakeholders that MTN Ghana is a responsible business with an absolute commitment to transparency, good corporate governance, and compliance.
MTN Ghana one of largest taxpayers in Ghana
MTN Ghana is one of the largest private sector taxpayers in Ghana, having been recognized on numerous occasions for its support of the GRA’s revenue mobilization efforts.
The GRA has also satisfactorily concluded multiple tax assessments on MTN Ghana over many years and presented MTN Ghana with various taxpayer awards in recognition of its contribution to the fiscal development of the country.
MTN Ghana thanked the GRA for its support throughout the process, especially allowing us a temporary withdrawal of the Notice of Assessment in a bid to resolve this matter in an amicable manner.
In 2019, the GRA commenced an audit of MTN Ghana with the objective to give assurance on the reliability and completeness of revenues declared by MTN Ghana for the purpose of tax computation for the period 2014-2018.
The GRA had not issued MTN Ghana with any prior guidelines and standards relating to the new CDR sequence-based methodology used for the audit.
In May 2021, after consultations and discussions between MTN Ghana, MTN Group, the Ministry of Finance of the Republic of Ghana and the GRA, the parties agreed to an independent review by a global professional services firm.
MTN Ghana has fully cooperated in this independent review, which was commissioned by the GRA in September 2021. The independent review found that it was unable to support the conclusions reached by the GRA’s third-party consultants as the basis for the assessment.
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