---
title: "Ghana Withdraws $672 Million Back-Tax Demand From MTN Group"
description: "MTN Group Ltd., Africa’s largest wireless carrier, said a 8.2 billion cedi ($672 million) tax bill it received from the Ghana’s government has been scrapped."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-02-03-ghana-withdraws-672-million-back-tax-demand-from-mtn-group/"
published: "2023-02-03T19:27:41"
lang: "en-ZA"
word_count: 207
---

# Ghana Withdraws $672 Million Back-Tax Demand From MTN Group

> MTN Group Ltd., Africa’s largest wireless carrier, said a 8.2 billion cedi ($672 million) tax bill it received from the Ghana’s government has been scrapped.

By Bloomberg · Published 3 February 2023, 21:27 SAST

## Key points
- Ghana’s government has been seeking to collect back taxes from some of the nation's largest companies, including Gold Fields Ltd., Kosmos Energy Ltd. and Tullow Oil Plc. Following a 21-day negotiation period between the West African nation’s authorities and MTN, Ghana withdrew its potential fine of $773 million which represented about 5% of MTN’s market capitalization. Ghana is currently going through a difficult financial situation due to ballooning debt and loan-service costs, with the government allocating most of its revenue to service an estimated 576 billion cedis of public debt. The country is now restructuring its obligations and seeking a $3 billion loan from the IMF.
- Ghana has withdrawn its $773 million tax bill issued to mobile-phone operator MTN after extensive negotiations.
- MTN's potential fine represented about 5% of its market capitalization.
- Ghana's cash-strapped government had been demanding some of the nation’s largest companies pay millions of dollars in back taxes.
- The country is restructuring its debt obligations and seeking a $3 billion loan from the IMF.

## Content

Ghana’s decision came after “extensive and productive discussions” during a 21-day negotiation period between the West African nation’s authorities and the mobile-phone operator, MTN said in a filing on Friday.

The decision to withdraw the tax bill came after the Ghana Revenue Authority last month sent the country’s biggest corporate taxpayer a surprise claim for the period between 2014 and 2018.

The potential fine represented about 5% of MTN’s market capitalization and the government’s decision “removes a threat to this year’s shareholder returns,” Bloomberg Intelligence analyst John Davies said in a note.

[Read More: MTN Plans to Dispute $773 Million Ghana Tax Bill if Talks Fail](https://www.bloomberg.com/news/articles/2023-01-16/mtn-plans-to-dispute-773-million-ghana-tax-bill-if-talks-fail)

Ghana’s cash-strapped government has been demanding some of the nation’s largest companies to pay millions of dollars of back taxes. Gold Fields Ltd., Kosmos Energy Ltd. and Tullow Oil Plc have received similar bills. All of the companies dispute the government’s claims.

Ghana lost access to international capital markets because of its ballooning debt and loan-service costs. The government has been forced to allocate most of its revenue to service an estimated 576 billion cedis of public debt.

It is restructuring most of its obligations amid a slump in the cedi, and is seeking a $3 billion loan from the IMF.