South Africa urges MTN & GRA to resolve tax dispute

The South African government has urged mobile operator MTN Group and the Ghana Revenue Authority to work closely to resolve a GH¢8,209,603,842.14 (US$773 million) tax dispute.

South Africa’s Minister of International Relations and Cooperation, Dr Naledi Pandor last Friday encouraged MTN to work closely with the authorities in Ghana to devise a solution.

A media statement issued by the Department of International Relations and Cooperation, said the South African Government is committed to promoting increased investment in Ghana.

The Minister calls on the parties involved to do everything possible to find an amicable solution to these reported challenges,” the statement said.

“Our common destiny as outlined in the Agenda 2063 aspirations, depends on a win-win intra-African collaboration and cooperation”.

South Africa is one of the largest foreign direct investors in Ghana, mainly in mining, communication, beverages, retail and franchising.

Dispute

Scancom PLC, owners of MTN Ghana has pushed back on an alleged tax infringement placed on the company by the Ghana Revenue Authority (GRA) between 2014 and 2018.

The telecommunications company says it is a tax-compliant corporate citizen and the tax liability notice of GH¢8,209,603,842.14 (US$773 million) issued against it by the GRA is unacceptable.

The assessment of GH¢8,209,603,842.14 includes 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.

GRAMTNSouth Africa
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