ACCRA - MTN Ghana, a leading telecom operator, has been ordered to pay GH¢19 million in back taxes by Accra's Commercial Division. The decision, which was upheld today, stems from a dispute over value-added tax (VAT) liabilities and associated penalties and interest for imported services used in its telecom and mobile money businesses.
The court's ruling confirmed the Ghana Revenue Authority's (GRA) tax claim against MTN Ghana for the period from January 2014 to December 2017. The comprehensive tax audit conducted by the GRA applied the VAT Act (Act 870) and scrutinized various aspects of MTN’s operations. The focus was on input VAT claims tied to goods acquisition, service imports, and the costs associated with constructing office premises.
Justice Afi Agbanu Kudomor had previously upheld the GRA's tax imposition under VAT Act 870 on Wednesday, November 9. The ruling identified MTN as a Partial Exempt Trader during the assessment period and maintained that levies for the Ghana Education Trust Fund (GETFund) and National Health Insurance Levy (NHIL), at rates of 2.5% each, were correctly applied to imported services from August to December 2018. This was irrespective of their use in taxable or exempt supplies by MTN.
MTN Ghana had challenged the GRA over the additional VAT, penalties, and interest but ultimately, the Tax Appeal was dismissed with no order as to costs. This decision reinforces the authority of the GRA in its enforcement of tax laws and underscores the importance of compliance with tax obligations by corporations operating within Ghana.
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