Ghana Revenue Authority has withdrawn its $665m tax fine against MTN Ghana.
This was disclosed in a statement published on the Johannesburg Stock Exchange news service. In January, the GRA issued a notice of tax liability to Scancom PLC (MTN Ghana), for an amount of $665m, including penalties and interest charges.
At the time, the GRA accused MTN of underreporting its revenue in Ghana by about 30 per cent from 2014 to 2018.
It said it was auditing the company for the years 2014 to 2018.
According to MTN, the tax assessment was dropped after extensive discussions between MTN Ghana, MTN and relevant authorities in Ghana.
The statement read, “MTN shareholders are referred to the announcement dated 13th January 2023 relating to the notice of assessment of tax liability (the assessment) issued by the GRA to Scancom PLC (MTN Ghana or the company).
“The Assessment was for an amount of approximately GHS8.2bn (approximately $665m at current exchange rates), including penalties and interest charges. At the time, the assessment was temporarily withdrawn to provide a 21-day timeline to allow for further engagements. Shareholders are advised that following extensive and productive discussions held during this 21-day period among MTN Ghana, MTN and relevant authorities in Ghana, the GRA has on 03 February 2023 fully withdrawn the assessment.
“MTN would like to further assure shareholders and other stakeholders of MTN Ghana’s commitment to the highest standards of tax compliance and responsible corporate citizenship.”
The firm added that it remained confident in Ghana’s economy and maintained its planned investment and developmental initiatives in the country.