Business News of Wednesday, 4 February 2015
Source: Citifmonline.com
Telecommunications giant, MTN, has dismissed reports of financial malfeasance in its operations.
According o the company, it complies with the NCA’s rules and regulations on submitting operational and financial data on monthly and quarterly basis to the Ghana Revenue Authority (GRA).
There have been claims that MTN under reports its profits, but following an audit findings in 2013 by the regulator, NCA, the telecom operator says it did no such thing.
According to the company, they have paid in excess of GHC 3 million for liability in respect of regulatory fees and over GHC 14 million for penalty in respect of international incoming traffic.
In a statement copied to Citi Business News, the company said it was a leading taxpayer in Ghana with “a conglomeration of taxes including VAT, CST,NHIL,NCA fees etc resulting in 34.5percent of every GHS1 cedi spent by an MTN subscriber being paid as taxes.’’
Speaking on Eyewitness News, the Corporate Services Executive of MTN, Cynthia Lumor categorically stated that her outfit does not under declare its revenue. “The issue has to do with a disagreement of the interpretation of how to calculate the 1 percent (regulatory fees)’’
In computing net revenues for calculation of 1percent of regulatory fees, MTN deducted expenses including dealer commissions and incentives.
The NCA disagreed with the operator’s computation, citing an amendment to the definition of net revenues in the Mobile License.
Following extensive discussions with the NCA, MTN says it has since paid the amount