MTN Nigeria, the country’s leading telecommunications provider with a market share of 36.2% and 77.1 million subscriptions, has filed an appeal against a Tax Appeal Tribunal (TAT) ruling.
The TAT upheld a principal liability of $47.8 million in unpaid taxes for the years 2007 to 2017. MTN’s Secretary, Uto Ukpanah, announced the appeal, ensuring the Nigerian Exchange Limited and its investors were informed about the decision.
The origin of the dispute traces back to 2018 when the Attorney General demanded $2 billion in tax arrears from MTN. However, this claim was withdrawn in January 2020 and reassigned to the Federal Inland Revenue Service (FIRS). Initially assessed at $93.6 million, this amount included both principal liability and penalties. Subsequently, it was revised to a total of $135.7 million, encompassing the principal liability of $47.8 million and interest and penalties amounting to $87.9 million.
MTN Nigeria contested these figures, specifically addressing VAT Act provisions concerning offshore training services, software licensing, and upgrades, leading them to the TAT. On October 20, 2023, the TAT upheld the principal liability of $47.8 million but dismissed the interest and penalty charges totaling $87.9 million.
In response to this ruling, MTN opted to appeal, guided by recommendations from its tax and legal consultants. Tobechukwu Okigbo, MTN’s Chief Corporate Services and Sustainability Officer, stressed the importance of adhering to established procedures in such disputes. He also advocated for fiscal policy reforms to ensure clarity and fairness in tax assessments, emphasizing the company’s commitment to legal and ethical tax practices.
