MTN Group, Africa's premier wireless carrier, suffered a 3% decline in its share price due to revised unrealized foreign-exchange losses from its Lagos-listed unit, MTN Nigeria Communications. The revision came after the company discovered historical inaccuracies in measuring finance costs related to outstanding matured trade obligations. This led to a restatement of H1 earnings per share, which now stands 13% lower than initially reported.
MTN Nigeria Communications, which accounts for over a third of the group's total revenue, is currently contesting a $47.8 million value-added tax assessment issued by Nigerian authorities for the periods 2007 and 2010-17. Backed by tax and legal consultants, MTN plans to appeal this tax demand.
In response to escalating telecommunication tax demands across Africa, six telecommunications CEOs, including MTN's Ralph Mupita and Vodacom Group's Shameel Joosub, signed an agreement in Rwanda. They are appealing to African leaders and policymakers for fiscal policy reforms aimed at rationalizing mobile industry taxation.
Despite previous tax disputes in Nigeria, including a $2 billion back taxes claim, and a $773 million Ghanaian back-tax bill, MTN has often emerged victorious. Notably in 2020, a $2 billion claim was dropped by Nigerian authorities, and recently Ghana had to abandon a $773 million back-tax bill against the company.
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