MTN Group, Africa’s largest telecommunications provider, says it “strongly disputes” the $773 million back-tax bill, penalties and interest charges received by its subsidiary in Ghana.
The company, in a statement on Friday, disapproved of the bill by the Ghana Revenue Authority (GRA), claiming it does not have a reliable revenue.
According to the company, it received the notice this week that “the bill is for the period between 2014 and 2018 and implies that MTN under-declared its revenue in the country by 30 percent.
“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 telco said.
“MTN Ghana strongly disputes the accuracy and basis of the assessment, including the methodology used in conducting the audit.”
The company added that the GRA used a third-party consultant as well as a new methodology.
In the statement, MTN Group also said the GRA had begun an audit of its Ghanaian business in 2019 to look into the “reliability and completeness” of the revenue it declared during the five-year period.
“The GRA hadn’t issued the unit with any guidelines or standards relating to its new audit methodology,” MTN Group 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.”
Meanwhile, Ghana has been struggling to keep its economy buoyant amid global headwinds.
Last year, the Ghanaian government declared a default on loans and suspended all debt service payments under “certain categories of its external debt”.
This also followed a staff-level agreement reached by the International Monetary Fund (IMF) with Ghana on a $3 billion bailout package to tackle its economic difficulties.
One of the grounds on which Ghana got the facility from the IMF is a “comprehensive debt restructuring”.