South African FM Calls on MTN Operator and Ghana to Resolve $773 Million Tax Row

Earlier this month, the South African network operator MTN Group said the Ghana Revenue Authority had issued its Ghanaian subsidiary, MTN Ghana, a bill for back taxes of around $773 million, including penalties and interest charges, after auditing the years from 2014 to 2018 and concluding the company had under declared its revenue for the period.

South Africa’s Minister of Foreign Affairs Naledi Pandor has called on South African mobile network operator MTN Group (MTNJ.J) and the government of Ghana to find a cordial solution for an ongoing $773 million tax dispute.

“The Minister calls on the parties involved to do everything possible to find an amicable solution to these reported challenges,” the South African Department of International Relations and Cooperation said in a press release. “Our common destiny, as outlined in the Agenda 2063 aspirations, depend on a win-win intra-African collaboration and cooperation.”

Pandor pointed out that her country is “is committed to promoting increased South African investment in Ghana in particular and the continent in general.”

On January 13, the Ghana Revenue Authority (GRA) issued the Ghanaian subsidiary of South African multinational mobile operator MTN Ghana a bill for back taxes of around $773 million, including penalties and interest charges.

The GRA accused the Ghanaian MTNJ.J subsidiary, which provides mobile network services in 19 countries across Africa and the Middle East, of under declaring its revenue during the period between 2014 and 2018 by at least 30%.

MTN Ghana, the West African country's top corporate taxpayer, denied the allegations, saying it disputes the “accuracy and basis” of the GRA assessment.

“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,” the carrier said.