The Ghana Revenue Authority (GRA) has justified a $773 million back-tax bill it imposed on telecommunication company, MTN Ghana.
According to the Authority, it followed due process in serving the telco company the notice. It indicated that its attention has been drawn to a public statement issued by SCANCOM PLC (MTN GH) in reaction to a Notice of Tax Assessment served on it by the Authority on the 10th of January 2023. By this, GRA reminded taxpayers and the general public that its mandate in tax administration is derived from the Ghana Revenue Authority Act 2009, (Act 791), the Revenue Administration Act 2016, (Act 915) and several other tax laws.
“In the case of MTN Ghana, GRA followed due process in serving a Notice of Assessment and has engaged MTN Ghana as required by Law to ensure that it communicates the basis of assessment as well as the several avenues available for objection as required in Section 42 of the Revenue Administration Act.”
Ghana Revenue Authority
Contained in a statement, GRA noted that section 36 of the Revenue Administration Act 2016, (Act 915), mandates the Commissioner-General to audit the tax affairs of a person. It explained that its activities is in accordance with the provision that the Authority conducted a Tax audit on MTN Ghana for the tax period 2014 to 2018.
“The audit was conducted as required by law adhering to the principles of fairness and transparency. Section 42 of Act 915 also prescribes the ways in which a person can object to a tax assessment that is served by the Commissioner-General.”
Ghana Revenue Authority
GRA emphasized that MTN Ghana has been reminded at all times in the Authority’s interactions with it about its right to object to any tax decision by the Commissioner-General.
Admittedly, the Authority explained that MTN Ghana has been audited many times in the past and has received numerous awards as a compliant taxpayer. However, it noted that these do not in any way prejudice the conduct of audits as required by Law.
“GRA uses this opportunity to remind taxpayers of their obligations under the tax Laws to declare and pay the right amount of tax(es) as well as the mandate of GRA to ensure that all businesses pay the right amount of tax.”
Ghana Revenue Authority
MTN Ghana contests back-tax bill by GRA
It will be recalled that MTN Ghana in an earlier statement contested the back-tax bill by GRA, describing it as inaccurate. It stated that it is a tax-compliant corporate citizen and the tax liability notice of GHC 8,209,603,842.14 (US$773 million) issued against it by the GRA is unacceptable.
The assessment of GHC 8,209,603,842.14 includes penalties and interest charges. In this regard, MTN Ghana noted that from the base component of the assessment, which excludes penalties and interest on MTN Ghana’s analysis, the GRA inferred that MTN Ghana under declared its revenue by more than approximately 30% over the 5-year period 2014 to 2018.
MTN Ghana revealed that the GRA audited the firm 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. This, MTN Ghana strongly disputed its 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.
The telco giant equally reckoned that the taxes due have been paid during the period under assessment. It further highlighted that MTN Group and MTN Ghana will continue to engage with the relevant authorities on the matter and it remains resolute that MTN Ghana is a tax compliant corporate citizen.
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