Government’s windfall tax charges against MTN is almost half of IMF bailout funds

The ‘windfall taxes’ Government wants from MTN is almost half of the money it’s asking for from IMF.

Government says MTN owes it something close to $1 billion.

This it says was taxes between 2014 and 2018. MTN has vehemently disputes that claim by a government that has run the coffers of the state dry and moved the country into a bankrupt position.

So question is, GRA in their flashy office complexes sat for taxes of this magnitude to be accumulated by one company?

Is it that, the government wants to use some legal-illegal means to get some good pound of fresh from MTN to solve its self created problems?

MTN Group has encountered significant turbulence in one of its more important markets, Ghana, with tax authorities there claiming they are owed billions in unpaid taxes.

The Ghana Revenue Authority (GRA) has slapped MTN Ghana with a notice of assessment of tax liability along with a 21-day temporary withdrawal “to allow for further engagement”.

The amount quoted by the GRA in the assessment amounted to US$773-million including penalties and interest charges, MTN said. The amount is nearly half what the government is seeking from the IMF for a bailout.

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“The base component of the assessment (that is, excluding penalties and interest), on MTN Ghana’s analysis, infers that MTN Ghana under-declared its revenue by approximately 30% over the audit period,” the group said in a statement published via the JSE after markets closed in Johannesburg on Friday.

“The GRA audited MTN Ghana for the period 2014-2018 and used a third-party consultant as well as a new methodology based on call data records (CDR), recharges and other data. MTN Ghana strongly disputes the accuracy and basis of the assessment, including the methodology used in conducting the audit,” the group said.

“MTN Ghana believes that the taxes due have been paid during the period under assessment and has resolved to defend MTN Ghana’s position on the assessment.”