Ralph Mupita, President and CEO of MTN Group, said they would meet with the authorities in Ghana in a “couple of days” to amicably resolve the disputed R11.9 billion tax bill.
On 13 January 2023, MTN informed shareholders that the Ghana Revenue Authority (GRA) issued MTN Ghana with a notice of assessment of tax liability.
The assessment was for an amount of GHS 8.2 billion (approximately R11.9 billion), including penalties and interest charges.
The GRA’s assessment infers that MTN Ghana under-declared its revenue by approximately 30% between 2014 and 2018.
The GRA audited MTN Ghana and used a third-party consultant and a new methodology based on call data records (CDR), recharges, and other data.
The GRA issued a temporary withdrawal of the notice of the assessment on 13 January 2023, providing a 21-day timeline to allow for further engagement.
Commenting on the issue, Mupita said as a responsible corporate citizen, they have paid all the taxes due over the disputed period.
“We hold no provision or contingencies around this matter because we are convinced – through an independent verification – that the taxes due have been paid,” he said.
He added that there is no reason for MTN to under-declare revenue. “To under-declare revenue is to under-declare profits. There is no sense in doing that,” he said.
“We feel quite resolute about that position. We will engage very respectfully with the Ghanian authorities to sort out the matter.”