- MTN Nigeria Drags FIRS to Tax Tribunal
MTN Nigeria Communications Plc. has said all matters regarding the status of taxes on 2015 fine are before the tax tribunal.
The network operator on Friday acknowledged that there is a technical disagreement between the company and the Federal Inland Revenue Service (FIRS) regarding how the 2015 fine should be treated for tax purposes.
FIRS, however, said there is no disagreement regarding the service position on taxes, saying while MTN Nigeria paid N330 billion fine imposed on the company for failing to disconnect 5.2 million unregistered subscribers, the fine paid is not tax-deductible.
Mr Fowler, the Chairman, FIRS, said “MTN took a position that the fine or penalty should be tax-deductible. (But), the FIRS said that does not make sense.
“One cannot be given a penalty or fine, which is a punitive measure, and the company is saying it is tax-deductible so that it will get a tax credit on that,” Mr Fowler said.
“Initially they (MTN) made the payment on account. The FIRS said, no, it is not on account, but it is tax due to government.”
“The alternative is for MTN to go to court and let the court (maybe Supreme Court) say the FIRS was wrong, and that such fines or penalties are tax-deductible,” he said.
Responding to FIRS position, MTN said, “Our attention has been drawn to media reports regarding the status of taxes relating to the 2015 fine imposed on MTN Nigeria Communications Plc (MTN).
“We acknowledge that there is a technical disagreement between MTN and the Federal Inland Revenue Service (FIRS) as to how the fine should be treated for tax purposes. However, while the monies have been paid to FIRS, we have taken the disagreement to the Tax Tribunal set up by FIRS Chairman and Minister of Finance, and are awaiting a decision.
“MTN remains fully compliant with Nigerian tax laws and will abide by the findings of the tribunal. The company is committed to meeting its fiscal responsibilities and contributing to the social and economic development of Nigeria.
The company added that since it was incorporated in 2001, MTN Nigeria has invested more than N2 trillion into the Nigerian economy and has almost the same amount in taxes, levies and other regulatory fees.
