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By Our Reporter
MTN Ghana, a subsidiary of MTN Group, has been fined around $773m by the Ghana Revenue Authority for allegedly underreporting its revenue. The fine includes penalties and interest charges.
According to the GRA, MTN underreported its revenue in Ghana by about 30 per cent from 2014 to 2018.
It disclosed that it was discovered after auditing the company for the years 2014 to 2018.
In a statement titled ‘Notice of Tax Assessment,’ and dated January 13, 2023, MTN Ghana said, “Scancom PLC (MTN Ghana) stakeholders are advised that the Ghana Revenue Authority (GRA) issued the company with a notice of assessment of tax liability (the Assessment).
“The notice was dated on 10 January 2023 and received by MTN Ghana on 11 January 2023. On 13 January 2023, GRA issued a temporary withdrawal of the Notice of Assessment for 21 days to allow for further engagements.
“The Assessment was for an amount of GHS8,209,603,842.14 (including 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 per cent over the 5-year period 2014 to 2018.”
According to the firm, it will continue to engage with the relevant authorities on the matter.
It added that it has been tax compliant and paid its taxes in the period under review.
It claimed, “MTN Ghana, one of the largest private sector taxpayers in Ghana, has been recognised on numerous occasions for its support of the GRA’s revenue mobilisation 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.
“We would like to thank the GRA for their support throughout the process, especially for allowing us a temporary withdrawal of the Notice of Assessment in a bid to resolve this matter in an amicable manner.”
