Tax Tribunal Orders MTN To Pay FIRS $72.6m

It was a win-win situation for both MTN Nigeria and the Federal Inland Revenue Service (FIRS) as the Tax Appeal Tribunal sitting in Lagos ordered the telecommunications giant to pay the sum $72,551,059 in unpaid tax but ruled that it is not liable to pay $21,039,807 as penalties and interest on the principal tax amount. The amount is said to be unpaid taxes between 2007 and2017. The verdict was delivered by a five-person panel led by Professor A. B. Hamed in response to an appeal (TAT/LZ/VAT/075) filed by MTN Nigeria against the FIRS’s request for payment of the outstanding tax. The case arose from a report issued by the Office of the Attorney General of the Federation in May 2018, which investigated MTN’s Forms A and M transactions covering the accounting years from 2007 to 2017. A revised report in August 2018 adjusted the alleged outstanding import duty and value-added tax (VAT) to N242.2 billion for Form M-visible transactions and $1.284 billion for Form A-invisible transactions. In July 2021, the FIRS issued a VAT assessment of $93,590,366 million to MTN Nigeria, comprising $72,551,059 million as the principal liability and $21,039,807 million for penalties and interest on the principal sum (first assessment). MTN Nigeria objected to the first assessment, leading to a further review by the FIRS. In a notice of assessment dated April 14, 2022, the FIRS issued a revised assessment of $135,697,755 million to MTN. While the principal tax liability in the revised assessment was lower than the first assessment at $47,776,210 million, the interest and penalty imposed by the FIRS in the revised assessment were higher at $87.9 million. MTN Nigeria lodged an objection to the revised assessment, which was refused by the FIRS in a letter dated June 16, 2022.  The Tax Appeal Tribunal, after considering all the submitted documents and citing legal authorities, ruled in favour of the FIRS on issues one to four and ordered MTN to settle the assessed tax liabilities. However, it ruled in favour of MTN on issue five, which concerned penalty and interest, and set aside the related penalties. MTN has been ordered to pay the assessed tax liability of $72,551,059 while being relieved of the associated penalties and interest.

N900m IPMAN Debt: Delay In Payment Due To Bogus Claims, Says Anambra Govt

The Anambra government has met with leadership of the Independent Petroleum Marketers Association of Nigeria (IPMAN) over debt claims by some marketers who supplied diesel for streetlight generating sets. Mr Tony Collins Nwabunwanne, the state Commissioner for Local Government, Chieftaincy and Community Affairs, led the government team while Mr Chinedu Anyaso, chairman of IPMAN Enugu Depot Community, led the marketers in company of his executive members and some of the contractors. Speaking to newsmen, Nwabunwanne said the delay in payment was due to discrepancies and bloated bills which some of the contractors submitted. The Commissioner, who described meeting with the marketers as productive, said Anambra government was willing and ready to pay the contractors as soon as the inconsistencies in claims are cleared. He promised to present their plights to the governor in the coming days for his consideration. “We had a fruitful meeting, the marketers agreed that the blame is not entirely on government but that of the contractors, some of whom have made bloated claims. “But we have considered all that, we are making the necessary adjustments and very soon, Mr Governor, Prof Chukwuma Soludo, will issue a directive,” he said. On his part, Anyaso thanked the Commissioner for his prompt response to their plea. Anyaso said IPMAN was satisfied with the outcome of the meeting and was hopeful that Soludo would act swiftly as promised in the interest of marketers and contractors. “I want to thank Gov. Soludo for the prompt response we got after complaining to him about the debt to our members and the effect on their businesses. “The Commissioner explained the issues to us and we understand better, but more importantly, we look forward to the fulfillment of the promises made in the meeting,” he said. IPMAN had complained about the non payment of about N900 million owed contractors and marketers who supplied diesel to the Anambra government for powering streetlight generators.