Uganda’s Revenue Authority (URA) is likely to be shaken by MTN Uganda’s refusal to pay a Shs136 billion ($55 million) tax liability.
The liability includes a Shs91 billion ($37 million) penalty, placed on the company by the authority after MTN refused to pay tax debts between 2003 and 2007.
MTN on Tuesday told reporters their statements showed they owe the URA only some Shs19 million in back taxes. According to MTN, this amount was cleared after tax authorities issued a grace period back in 2007.
“This (Shs19 million) should not have arisen at all, because it was cleared earlier,” Anthony Katamba, MTN Corporate Services General Manager, said in a statement published by the Daily Monitor.
Katamba, who is also MTN Uganda’s top legal advisor, added that the only issue to be discussed is the timing of the payment, which they said was made during the grace period around five years ago.
The URA is determined to get their money, however they have yet to take the matter to commercial court.