MTN Group said the office of Nigeria’s Attorney General (AG) calculates that MTN owes USD 2 billion in back tax related to the import of foreign equipment and payments to suppliers over the past ten years. MTN said that it had been in talks with the AG about an investigation into tax compliance, in a statement outlining the background to the case of money sent out of the country.
In this process, MTN said, the AG's office made a high-level calculation that MTN Nigeria should have paid approximately USD 2 billion in taxes relating to the importation of foreign equipment and payments to foreign suppliers over the last ten years. The company believes it has settled all tax obligations, it said.
In August, MTN said it submitted comprehensive documentation to the office of the AG. MTN Nigeria has also completed an initial assessment of the full period which indicates that total payments made to the tax authorities in regard to these foreign imports and payments in aggregate are USD 700 million, the group said.
It said there are valid reasons for the differences between the actual payments and the AG high-level assessment. MTN said it was notified by the office of the AG last week that it had not accepted the documentation presented, and it has given notice of an intention to recover the USD 2.0 billion from MTN Nigeria. Based on the detailed review performed, MTN Nigeria believes it has fully settled all amounts owing under the taxes in question.
The news comes less than a week after MTN was told by the Nigerian central bank to return USD 8.1 billion it is alleged to have illegally taken out of the country. MTN termed the latest demands by Nigerian authorities "regrettable and disconcerting", saying it would continue to engage with the relevant authorities on all these matters. It says it remains resolute that MTN Nigeria has not committed any offences, and will vigorously defend its position.
