The sanction, which the continent’s largest carrier is disputing, was levied at a time when the nation is trying to deal with a financial meltdown and record rising prices.
In the midst of the country’s economic chaos, the Ghanaian government fined MTN $773 million in tax penalties.
MTN, Africa’s largest wireless carrier, reported getting a $773 million back-tax bill from Ghana, which it intends to contest. Penalties and interest are included in the bill.
According to the company, it received a letter from the Ghanaian government accusing it of under-declared its revenue in the country by 30% between 2014 and 2018, resulting in a $773 million tax penalty.
MTN claims in a statement issued on Friday that it vehemently opposes the $773 million back-tax bill, penalties, and accrued interest issued to its subsidiary in Ghana.
MTN expressed its opposition to the Ghana Revenue Authority’s (GRA) bill, claiming that it lacks a consistent source of revenue.
“MTN Ghana believes that the taxes due have been paid during the period under assessment and has resolved to vigorously defend MTN Ghana’s position on the assessment,” the telecommunication company said
“MTN Ghana strongly disputes the accuracy and basis of the assessment, including the methodology used in conducting the audit,” it added.
The penalty was levied as the country struggles with a debt crisis and record rising prices.
In the face of an external debt crisis, Ghana has been battling to keep its economy strong.
The Ghanaian government declared a loan default in 2022, and all debt service payments on certain types of international debt were suspended.
Following a staff-level contract between Ghana and the International Monetary Fund (IMF) on a $3 billion bailout package to resolve the country’s financial troubles, debt payments were postponed.
