By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Independent News ExpressIndependent News Express
  • Home
  • International
    InternationalShow More
    United Nations
    4th International Conference On Financing For Development Delivers Renewed Hope And Action For Sustainable Development
    3 weeks ago
    The African Development Bank and the United Nations Human Settlements Programme (UN-Habitat) scale up drive for sustainable urbanization in Africa
    AfDB, UN-Habitat Scale Up Drive For Sustainable Urbanisation In Africa
    3 weeks ago
    UN
    North Africa: Green Climate Fund Approves Record $300m For FAO-designed Projects In Papua New Guinea, Saint Lucia, The Sahel
    4 weeks ago
    UNICEF
    How Wars Across Middle East, North Africa Affecting Children – UNICEF
    4 weeks ago
    UNDP
    UN Development Programme Welcomes Historic Deal On Sustainable Development Even Amidst Global Turmoil
    4 weeks ago
  • Africa
    Africa
    Show More
    Top News
    African Union Member States Pledge To Improve Nutrition And Food Security In Africa
    3 years ago
    Climate Change: How Women Weather The Storm In Sudan
    2 years ago
    New Visa Requirement For Namibian Nationals Visiting the United Kingdom
    2 years ago
    Latest News
    At Gender Statistics Forum, African Leaders Urge Renewed Commitment To Quality Gender Data
    3 weeks ago
    Ooni’s Wife, Olori Temitope Enitan-Ogunwusi Takes Ile Ife Royalty To ADWIN Launch In Cote d’Ivoire
    2 months ago
    Independent UN Body Finds Systemic Racism Against Africans And People Of African Descent
    2 months ago
    Public Exit: Why South Africa Businesses Are Moving To Private Cloud
    2 months ago
  • Corporate News
    • Media Outreach
  • Politics
    Politics
    Show More
    Top News
    Voters In Katsina Vow To Dump Buhairi, APC
    2 years ago
    My Son Must Win, Ondo State’s King Threatens His People
    2 years ago
    I Will Not Disappoint My Constituents, Dekor Reassures Ogoni People
    2 years ago
    Latest News
    Gov Adeleke’s Outburst Against Aregbesola Shows Sign Of A Drowning Man – ADC Group
    1 week ago
    Youth Party Releases Primary Election Guidelines Ahead of August 16 Bye-Elections
    2 weeks ago
    Youth Party Appreciate Voters, Rejects Lagos Council Polls, Alleges Widespread Rigging
    2 weeks ago
    Lagos LG Poll: APC’s Osagie Daniel Coasting Home To Victory In Amuwo Odofin’s Ward K
    2 weeks ago
  • News
    • Agriculture
    • Breaking News
    • Tech
    • Maritime
    • Crime
    • Art & Culture
    News
    Show More
    Top News
    Ondo Governor, Akeredolu Begins Construction Of First Flyover In Akure
    2 years ago
    Celebration Of Life: Reverend Adewumi Jegede Of Later House Of God Assembly Buried Amid Pomp
    1 year ago
    Pa Abdulfatah Amoo Ayanwale
    Pa Ayanwale Dies At 76, Fidau Prayers Holds 8 August
    2 years ago
    Latest News
    Retrospect: A Historic Inaugural Meeting of Apapa-Iganmu LCDA
    1 day ago
    BREAKING: EFCC Arrests Abdullahi Bashir Haske Over Alleged Money Laundering and Corruption
    3 days ago
    X3M Ideas, SO&U, Noah’s Ark, Others Shine At AAAN Gala Night
    6 days ago
    CAPPA Condemns UI’s Suspension Of Student Activists, Urges Reinstatement
    2 weeks ago
  • Entertainment
    • Comedy
    • Movies
    • Music
    • Television
    • Concert & Events
    Entertainment
    Show More
    Top News
    Evergreen Music Boss Reiterates Commitment To Preservation Of Nigerian Music 
    3 years ago
    Stevetech Electrical Engineering Enterprise Boss Ties Knot With Halimat In Lagos
    2 years ago
    Quest Evicted, As Precious Mac, Victory Make Nigerian Idol Season 8 Finale
    2 years ago
    Latest News
    Unlock More for Less as Big Brother Naija Season 10 Beckons
    6 days ago
    Purp vs Raymu: Who Will Be Crowned The Next Nigerian Idol?
    3 weeks ago
    Local Content Powers African Dreams
    3 weeks ago
    The Drama Returns As BBNaija ‘No Loose Guard’ Reunion Premieres June 23
    1 month ago
  • Lifestyle
    • Fashion
    • Love & Life
    • Food & Drink
    • Travel & Tourism
    • Relationship
    • Sex
    Lifestyle
    Show More
    Top News
    Amazing Looks Of Jennifer Lopez In Her Three Unique Wedding Gowns
    3 years ago
    NCPC, Lagos Christian Pilgrims Board Tour Israel, Jordan Ahead 2024 Pilgrimage
    1 year ago
    Isese: Court Summons IGP, Kwara Govt, Others Over Detained Traditionalists
    2 years ago
    Latest News
    Noble Call to Service: Inside the Induction of 104 New Knights of St. Mulumba
    1 month ago
    Joining The Knighthood Brings You Closer To God -Sir Eva Njemanze
    1 month ago
    Africa Tech Festival Unveils Strategic Themes For 2025 Event,
    1 month ago
    Lagos SWAN Joins UN To Celebrate World Nutrition Month At Unilag Confab
    2 months ago
  • Business
    • Banking & Finance
    • Oil & Gas
    BusinessShow More
    Petralon's Nigerian Drilling Campaign to Boost Offshore Oil Output
    Petralon’s Nigerian Drilling Campaign To Boost Offshore Oil Output
    3 weeks ago
    Year 2025
    How Nigeria Can Unleash Its Economic Potential – IMF
    3 weeks ago
    GTCO Plc Becomes 1st West Africa’s Financial Services Institution To Achieve Listing And Trading Of Its Ordinary Shares On London Stock Exchange
    3 weeks ago
    Unity Bank
    Unity Bank Empowers Young Entrepreneurs With ₦16M Business Grant
    3 weeks ago
    NNPCL Board Accused Of Planning Lavish Party In Rwanda Amidst N210tn Financial Scandal
    1 month ago
  • Health
    Health
    Show More
    Top News
    WHO
    WHO Gives Nigerian Laboratory Full Accreditation To Fight Measles And Rubella
    3 years ago
    European Union Allocates N75m To Prevent Spread Of Diphtheria In Nigeria
    2 years ago
    US Govt Must Heed Lessons Of PEPFAR – AIDS Society Warns
    2 years ago
    Latest News
    AIDS Society Welcomes US Bipartisan Move To Protect PEPFAR
    7 days ago
    SSB Tax: Industry Actors, Paid Mouthpieces Slammed Over Campaign To Stop CAPPA
    3 weeks ago
    CAPPA Warns Nigerians On Excessive Consumption Of Sugar-sweetened Beverages, Says Nigeria Is In The Throes Of Public Health Crisis
    3 weeks ago
    Rising Non-communicable Diseases: WHO Wants Higher Taxes For Sugary Drinks, Alcohol, Tobacco
    3 weeks ago
  • More
    • Sports
    • Aviation/Transportation
    • Deliverance Hour
    • Industry & Labour
    • Insurance
    • Interview
    • Judiciary
    • Metro
    • Opinion
    • Property
    • Religious
    • Romance
    • Science & Discovery
Reading: Tax Default: MTN Ordered To Pay FIRS $72.5m
Share
Notification Show More
Aa
Independent News ExpressIndependent News Express
Aa
  • Home
  • International
  • Africa
  • Corporate News
  • Politics
  • News
  • Entertainment
  • Lifestyle
  • Business
  • Health
  • More
Search
  • Home
  • International
  • Africa
  • Corporate News
    • Media Outreach
  • Politics
  • News
    • Agriculture
    • Breaking News
    • Tech
    • Maritime
    • Crime
    • Art & Culture
  • Entertainment
    • Comedy
    • Movies
    • Music
    • Television
    • Concert & Events
  • Lifestyle
    • Fashion
    • Love & Life
    • Food & Drink
    • Travel & Tourism
    • Relationship
    • Sex
  • Business
    • Banking & Finance
    • Oil & Gas
  • Health
  • More
    • Sports
    • Aviation/Transportation
    • Deliverance Hour
    • Industry & Labour
    • Insurance
    • Interview
    • Judiciary
    • Metro
    • Opinion
    • Property
    • Religious
    • Romance
    • Science & Discovery
Have an existing account? Sign In
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Independent News Express > Blog > Telecoms > Tax Default: MTN Ordered To Pay FIRS $72.5m
Telecoms

Tax Default: MTN Ordered To Pay FIRS $72.5m

Last updated: 2023/10/25 at 7:10 AM
2 years ago
Share
Tax Default: MTN Ordered To Pay FIRS $72.5m
SHARE

The Lagos division of the Tax Appeal tribunal has ordered MTN Nigeria Communications Limited to pay $72, 551, 059 million in tax default to the Federal Inland Revenue Services (FIRS), between the years 2007 to 2017.

The panel however freed the telecommunication firm from paying the sum of $21,039,807 million, as penalties and interest on the principal sum.

A five man-panel led by Professor A. B. Hamed, made the above declaration and order, while delivering judgment in an  appeal numbered TAT/LZ/VAT/075, filed by the telecommunication company against the request by the FIRS to pay the default.

- Advertisement -
Ad imageAd image

Other members of the panel were Barrister P. A. Olayemi; Barrister Babatunde Sobamowo; Barrister Samuel N. Ohwerhoye and Barrister Terzungwe Gbakighir.

The crux of the matter according to the processes filed for the appeal, was that sometimes in May 10, 2018, the Office of the Attorney General of the Federation (OAGF) issued a report of its investigation into the MTN’s Forms A and M transactions. The report covered 2007 to 2017 accounting years.

In a revised report dated August 20, 2018, the OAGF adjusted the alleged outstanding in respect of import duty and VAT to the tune of N242.2 billion, (Form M -visible transactions) whilst the section relating to VAT and Withholding Tax (WHT) was revised $1.284 billion (Form A invisible transactions).

The processes also stated that sometime in mid-2020, the FIRS informed the MTN that it had received a report from the OAGF in respect of the its alleged liability to VAT and WHT.

FIRS consequently conducted a review of the MTN’s tax and accounting records and upheld the OAGF’s alleged tax liability.

But MTN and its tax consultant, KPMG Advisory Services, held a series of meetings with the FIRS to resolve the tax dispute arising from the MTN’s alleged tax liability.

Thereafter, in July, 2021, the FIRS issued a VAT assessment of $93, 590, 366 million, to the MTN. This assessment comprised the sum of $72, 551, 059 million, as the principal liability and $21,039,807 million, for penalties and interest on the principal sum (first assessment).

However, MTN objected to the first assessment whereupon the FIRS further reviewed the assessment. Accordingly, by the Notice of Assessment dated April 14, 2022, the Respondent issued a revised assessment for US $135,697,755 million to MTN as revised assessment.

Although the principal amount of tax alleged to be outstanding and due from the Appellant (principal tax liability) in the revised assessment, i.e. $47, 776, 210 million, is less than the alleged principal tax liability contained in the first assessment, i.e., $72,551,059 million, the interest and penalty imposed by the FIRS on the alleged principal tax liability in the revised assessment, i.e. $87.900 million, is higher than the interest and penalty imposed by the FIRS on the alleged principal tax liability in the first assessment, i.e., US $21, 039,807 million.

The MTN by a letter of notice of objection dated May 13, 2022, objected to the FIRS’s revised assessment, and FIRS by a letter dated June 16, with ref. no. FIRS/TID/LOS/2020/0213/01, notified the MTN of its refusal to amend the revised assessment.

Dissatisfied with the FIRS’s amended revised assessment, MTN filed the Appeal before the Tax Appeal Tribunal.

Upon reviewing all the processes filed by the parties, the tribunal distilled five issues for determination, these were; “Whether in view of the clear and unequivocal provisions of the VAT Act prior to the amendment by the Finance Acts, the provision of software licensing and upgrades qualified as a taxable supply of goods and services.

“Whether the provision/lease of bandwidth capacities by Intelsat Global Services & Marketing Ltd, a non-resident entity, through transponders located in the satellite, qualifies as a taxable supply of goods and services.

“Whether in the absence of the production of any false or untrue document or statement by the Appellant, the Respondent has authority to conduct a tax investigation beyond the 5-year restriction.

“Whether training provided by offshore facilitators outside of Nigeria is liable to VAT in Nigeria.

“Whether the Respondent acted in error when it calculated and imposed interest and penalty on the Appellant’s alleged non-remittance of VAT liabilities, the said liabilities having not become final and conclusive.”

While counsel to MTN urged the tribunal to determine the issues in its favour, while FIRS counsel, who includes: Abu Ocheme Director Legal FIRS, Egodi Adedeji and Moses Ideho, urged the court to dismiss the MTN’s appeal, and determined the issues raised in FIRS’s favour.

The tribunal, after taken arguments on the parties, determined issues one to four in favour of the FIRS, while determined the fifth issue in favour of MTN.

The tribunal after perusing all the processes filed by parties, and cited plethora of authorities held that: “in the final analysis, it is the decision of this Honourable Tribunal that issues One to Four discussed above are all resolved in favour of the Respondent and the appellant is therefore ordered to settle the assessed liabilities accordingly.

“However, issue five in relation to penalty and interest is resolved in favour of the Appellant and is therefore set aside by this Honourable Tribunal. This is our Judgement.”

You Might Also Like

PHOTOS: NCC Unveils Digital Industrial Park In Kano

NCC, Stakeholders Tackle Rural Connectivity Challenges In Nigeria

NCC Commissions World-Class ICT Park At University Of Ibadan

NCC Mandates Service Providers To Inform Consumers About Major Outages On Networks, Launches Portal

PHOTOS: NCC Hosts Internet Exchange Point Of Nigeria Board In Abuja

INadminNG October 25, 2023 October 25, 2023
Share This Article
Facebook Twitter Whatsapp Whatsapp LinkedIn Telegram Email Print
Previous Article At Africa Cassava Conference, A Humble Plant Can Power Trade
Next Article Cervical Cancer Cervical Cancer: Nigeria To Vaccinate 7.7m Girls
about us

Independent News Express (iNews Express), a publication of 4Ds Nigeria Limited, is birthed out of the desires of the founding fathers to report News as it is.

We value Professionalism, Excellence, Service, Creativity and Integrity.

The Company

  • Home
  • About Us
  • Contact Us
  • Privacy & Policy

Quick Links

  • Advertise with us
  • Newsletters
  • Deal

Categories

Find Us on Socials

© Independent News Express. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?