Telecom giant denies owing Ondo State government N458 million in taxes

folarin okunola

February 3, 2016 11:09 AM

Amina Oyagbola, MTN executive, has stated that MTN Nigeria has fulfilled all its statutory obligations with respect to PAYE, Withholding Tax and Development levy, amongst others, contrary to Ondo State Board of Internal Revenue Service's (OSBIRS) claim that the telecom giant owed it N458,585,783.12 in various taxes.

Oyagbola made this known in a press statement as quoted by Funso Aina, PR and Protocol Manager in Corporate Services Division of MTN Nigeria.

This follows the closure of its telecom facilities in the state via an Ex-Parte court Order taken against MTN regarding a tax claim of N458,585,783.12 allegedly owed the Ondo State Board of Internal Revenue Service (OSBIRS) in Pay As You Earn (PAYE); Withholding Tax (WHT); Development levy, Business Premises and Education Endowment taxes.

READ: Subscribers on embattled telecom giant's network in Ondo, other states to experience blackouts

Oyagbola also stated, in the statement, that MTN also provided all the relevant assistance required through direct engagement, meetings and production of documentation (including 3rd party contracts) which were made available to the Internal Revenue Board and its consultants.

Speaking further, Oyagbola added that the action in court instituted by the State government leaves MTN duty bound to file relevant processes in addition to instituting an action at the Tax Appeal Tribunal.

She however refrained from commenting further on the matter, saying, “In view of the pendency of the matter before the courts, I am unable to comment on same. We are however particularly concerned about the impact on our customers, the good people of Ondo State and other States, who will not be able to enjoy good services on both their voice calls and data as a result of this action.”

It would appear that the Board is looking to pin the liability of 3rd party contractors on MTN based on its “best judgment” assessment while MTN insists that it is not liable for 3rd party service providers who are corporate legal entities, according to a report by Nigeria CommunicationsWeek.

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