MTN to fight Ghana’s surprise $773m tax bill if talks fail
MTN Group, Africa’s largest wireless carrier, has announced plans to initiate a dispute resolution process if talks with the Ghana Revenue Authority [GRA] over a surprise $773m back-tax bill fail.
The bill, which came after the GRA switched to a new methodology for tracking call data records based on the advice of a third-party consultant, was applied retroactively and without prior notice, according to the company.
Group Chief Executive Officer Ralph Mupita stated on an investor call that the company is currently engaging with authorities to resolve the unexpected bill.
“We strongly dispute this and will defend our position,” he said.
The Ghana Revenue Authority sent the country’s biggest corporate taxpayer a claim for the period between 2014 and 2018, alleging that MTN under-declared revenue by 30%, the Johannesburg-based operator said in a statement last week.
However, Ghana’s tax agency has defended its actions, stating that MTN Ghana’s audit adhered to “the principles of fairness and transparency.”
This is not the first legal and regulatory challenge MTN has faced in markets around Africa. In 2015, Nigeria fined the company $5.2 billion for failing to disconnect unregistered phone lines, though the parties later settled for less than the initial bill.
In 2020, the operator successfully challenged a separate $2 billion claim for unpaid taxes by Nigerian authorities. It has also faced down authorities in Benin and Cameroon over the terms of its licenses.
In order to trigger a conflict resolution process through Ghanaian courts, MTN must pay 30% of the tax bill, unless an appeal to lower the amount is approved.
