MTN Uganda faces Shs 1.5trillion tax Battle with URA
The audit claims MTN Uganda failed to remit local excise duty, VAT, and corporate tax amounting to Shs 330.7 billion, Shs 554.5 billion, and Shs 651.3 billion, respectively.
A heated tax dispute has erupted between MTN Uganda and the Uganda Revenue Authority (URA) over a staggering Shs 1.5 trillion ($409 million) in allegedly unpaid taxes.
The contention arises from a recent audit by SafariTech, a Kenyan tax auditing firm, covering 2019 to 2022.
The audit claims MTN Uganda failed to remit local excise duty, VAT, and corporate tax amounting to Shs 330.7 billion, Shs 554.5 billion, and Shs 651.3 billion, respectively.
URA alleges MTN collected these taxes but did not pass them on to the government.
The potential economic fallout has sparked debate, with experts warning that enforcing the tax bill could strain MTN’s financial position and even risk the telecom giant’s presence in Uganda.
MTN Uganda has disputed the audit findings, petitioning State House for intervention and labeling the tax liability as overstated. Some officials in the Finance Ministry share this concern, pointing out MTN’s ranking as a top taxpayer for the fiscal year ending July 2024.
URA, however, remains firm, giving MTN 45 days to challenge the assessment. Should the matter remain unresolved, it may escalate to the Tax Appeals Tribunal or the Supreme Court.
The stakes are high, and the resolution of this dispute could set a precedent for corporate taxation in Uganda.
