South African Foreign Minister Intervenes in MTN’s $773 Million Tax Dispute with Ghana Revenue Authority.
South Africa’s Minister of International Relations and Cooperation, Dr Naledi Pandor, urged MTN Group to work with Ghana’s authorities to find a resolution to the ongoing tax dispute between the telecommunications giant and the Ghana Revenue Authority.
The South African Government is committed to fostering increased investment in Ghana, according to a media statement issued by the Department of International Relations and Cooperation.
“Our common destiny as outlined in the Agenda 2063 aspirations, depends on a win-win intra-African collaboration and cooperation,” the statement added. South Africa is one of the largest foreign direct investors in Ghana, particularly in the mining, communication, beverages, retail and franchising sectors.
MTN Ghana, owned by Scancom PLC, has denied any tax infringement after the GRA issued a notice of GH¢8,209,603,842.14 (US$773 million) for alleged under-declared revenue between 2014 and 2018.
The telecommunications company disputes the “accuracy and basis” of the assessment, which includes penalties and interest charges. MTN Ghana claims that it is a tax-compliant corporate citizen and that the GRA’s notice is unacceptable.
The GRA’s assessment suggests that MTN Ghana under-declared its revenue by more than approximately 30% over the five-year period in question.