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MTN Makes U-Turn, Admits Not Paying N757.7bn Tax To FIRS ~ Prestige News

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4 years ago

July 22, 2022

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MTN Makes U-Turn, Admits Not Paying N757.7bn Tax To FIRS ~ FIRS

Nigeria’s biggest network provider, MTN Nigeria has reversed itself on the claims that it remitted N757.5bn to the Federal Government in 2021.

The company said last week that the actual amount paid to the tax authority- the Federal Inland Revenue Service in 2021 was N291.67bn.

“Without prejudice but specific to the Federal Inland Revenue Service (FIRS), direct remittances by the company to FIRS in 2021 was N291.7bn. While the balance represents VAT, levies, fees and duties paid to other Federal Government agencies.,” MTN reversed earlier claims.

The telecom firm said VAT on revenue paid to the government was N98.99bn; Withholding tax N71.17bn and companies Income Tax N99.28bn.

It revealed that Stamp Duties remitted was N8.47bn, Tertiary Education Tax was N10.64bn, while Information Technology Levy paid was N3.1bn.

On April 2, 2022, MTN company’s secretary, Uto Ukpanah, had said N757.7bn was remitted to the FIRS making it the highest single contributor to Nigeria’s tax in 2021.

Ukpanah said MTN paid the amount in direct and indirect taxes to the FIRS in the 2021.

MTN specifically claimed it paid N618.7bn in direct and indirect taxes to the FIRS.

“In 2021, MTN Nigeria’s total tax contribution to all government agencies including the FIRS amounted to N757.6bn while FIRS collected a total of N6.4trn tax revenue in the year.

“Specifically, MTN Nigeria paid a total of N618.7bn in direct and indirect taxes to the FIRS in the 2021 tax year, representing approximately 13.5 per cent of the total FIRS collection for the year,” the telco had said.

At the National Tax Dialogue Event organised by FIRS in April, the company was applauded as the most tax compliant organisation among the top 20 taxpayers in Nigeria for the 2021 tax year.

MTN’s 2021 Audited Financial Statement, revealed a 22.90 per cent growth in revenue from N1.35tn to N1.65tn.

The company reported a 45.5 per cent surge in net profit of N298.65bn, up from N205.21bn in 2020.