Emmanuel OchayiIn a twist to the tax controversy, MTN Nigeria has announced its intention to appeal the Tax Appeal Tribunal’s judgment ordering it to pay $72.5 million fine to the Federal Inland Revenue Service (FIRS) for the period from 2007 to 2017.
The telecommunications giant expressed its dissatisfaction with the ruling and its commitment to challenging the decision.
In a statement released on Monday, signed by the Company Secretary, Uto Ukpanah, MTN Nigeria stated, “On 20 October 2023, the Tax Appeal Tribunal (TAT) upheld the principal liability of $47.8 million and set aside the interest and penalty charges of $87.9 million. Having reviewed this outcome and considering input from our tax and legal consultants, MTN Nigeria has resolved to appeal the decision of the Tribunal.”
The dispute stems from VAT assessments covering transactions related to offshore training services, transponder services from a non-resident company, and software licensing and upgrades. MTN Nigeria has consistently maintained that it will follow established processes in resolving tax disputes.
Tobechukwu Okigbo, the Chief Corporate Services and Sustainability Officer at MTN Nigeria stressed that the way tax disputes are resolved is important in strengthening the system and advocating fiscal policy reforms that improve affordability for consumers and incentivize investments by operators. “Disputes like this and how they are resolved help build and strengthen the system,” Okigbo stated.
The tax dispute initially began in 2018 when the Attorney General of the Federation and Minister of Justice demanded approximately $2 billion in tax arrears from the company. Subsequently, the case was transferred to FIRS, which issued an initial assessment of $93.6 million, leading to the recent tribunal ruling.
MTN’s decision to appeal the judgment underscores the significance of this case and its potential impact on the taxation landscape for telecommunications companies in Nigeria.
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