MTN said it remained confident in the economy of Ghana as well as its future prospects and maintained its planned investment and developmental initiatives over the medium term to drive digital and financial inclusion. Picture: Bongani Mbatha African News Agency (ANA)
Telecom giant MTN said on Friday that the Ghana Revenue Authority (GRA) had fully withdrawn a notice of tax assessment of about $665 million (R11.6 billion) issued to its Ghanaian unit.
MTN shareholders were referred to the announcement on January 13 relating to the notice of assessment of tax liability issued by the GRA to Scancom, also known as MTN Ghana.
“The assessment was for an amount of approximately GHS8.2 billion (approximately $665 million 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 At the time, the assessment was temporarily withdrawn to provide a 21-day timeline to allow for further engagements,” it said.
MTN said following extensive and productive discussions held during this 21-day period between MTN Ghana, MTN and relevant authorities in Ghana, the GRA had fully withdrawn the tax claim on Friday.
“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. MTN and MTN Ghana would like to thank all stakeholders involved for the support and collaboration to arrive at this amicable and mutually satisfactory full withdrawal of the assessment,” it said.
MTN said it remained confident in the economy of Ghana as well as its future prospects and maintained its planned investment and developmental initiatives over the medium term to drive digital and financial inclusion.
MTN’s share price on Friday on the JSE closed 0.87% to R143.97.
Last week International Relations and Co-operation Minister Naledi Pandor urged MTN and the Ghanaian authorities to urgently find a resolution to the tax dispute.
Pandor in a statement called on the parties involved to do everything possible to find an amicable solution to the reported challenges.
“South Africa is one of the largest foreign direct investors in Ghana, mainly in mining, communication, beverages, retail, franchising, etc. These investments contribute to the Ghanaian gross domestic product and job creation,” she said.
Pandor said of major concern was that competitors of South African companies from other parts of the world did not appear to be subjected to the challenges that South African companies were subjected to.
She said these unfavourable conditions had led to disinvestment in some African markets by large South African companies, such as Shoprite, Game, Mr Price, Foschini, Woolworths, Tiger Brands, Sasol-Chemicals, Sasol-Gas, Group Five, Murray and Roberts, Metrolife Group, Telkom, Southern Sun and the Protea Group, to mention a few.
“The disinvestment has had a devastating impact on employment opportunities, poverty and inequalities, in particular, and GDP (gross domestic product) growth, in general,” she said.
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