MTN Nigeria (JSE:MTN), a subsidiary of Africa's leading wireless carrier MTN Group, is grappling with a substantial tax liability affirmed by the Nigerian Tax Authority Tribunal. According to a regulatory filing from the group, the company is expected to pay $47.8 million in value-added tax for the years between 2007 and 2010-2017. This development comes on the heels of a review on Tuesday, October 25, where MTN was confronted with a sizable Nigerian Tax Tribunal demand for $72.6 million.
Following these tax demands, MTN Group's shares took a hit on Thursday last week, plunging by 4.1% on the Johannesburg Stock Exchange - the worst performance since June 2021. The company attributes this downturn to the Lagos-based Tax Appeal Tribunal's order demanding settlement of the unpaid tax bill of $72.6 million.
In response to these demands, MTN Group is currently scrutinizing the order and planned to release an official statement last Thursday, October 27.
It's worth noting that this isn't the first time MTN has found itself embroiled in tax disputes with the Nigerian government. In fact, the company had previously been involved in a protracted legal dispute over a $2 billion claim. However, after a grueling 16-month battle, MTN eventually emerged victorious in 2020 when this substantial claim was rescinded.
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