AGF Withdraws from Tax Dispute Case Against MTN

The office of the attorney general of the federation has withdrawn from the tax dispute case against MTN Nigeria, TheCable can report.

In a letter seen by TheCable, MTN said it would withdraw its legal action against the AGF.

“MTN Nigeria is pleased to report that its legal counsel has received a letter dated January 8, 2020, from the attorney general of the federation and minister of justice (the AGF) formally withdrawing his demand for N242,244,452,215.97 and $1,283,610,357.86 alleged revenue indebtedness,” the letter read.

The letter confirmed that following careful review and due consultation with relevant statutory agencies, the AGF has decided to refer the matter to the Federal Inland Revenue Service (FIRS) and Nigeria Custom Service (NCS) with aview to resolving contentious issues.

“MTN Nigeria will consequently follow due court process to withdraw its legal action against the AGF and engage with the FIRS and NCC on the issues.”

Commenting on the development, Ferdi Moolman, MTN Nigeria CEO, said: “We are very pleased with the decision of the AGF and we commend him for his wisdom.

“We maintain our dedication to building and maintaining cordial relationships with all regulatory authorities in Nigeria and remain fully committed to meeting our fiscal responsibilities and contribution to the social and economic development of Nigeria.”

In September 2018, Abubakar Malami, the attorney general of the federation, demanded that the telco pay $2 billion in tax arrears.

The arrears requested cover import duties, VAT and withholding taxes on foreign imports/payments.

The AGF had said his office made a “high-level calculation” that MTN should have paid approximately $2 billion in taxes relating to the importation of foreign equipment and payments to foreign suppliers since 2008.