Business
AGF Withdraws $2bn Tax Payment Case Against MTN
MTN Nigeria Communications Plc says the Attorney General of the Federation and Minister of Justice, Mr Abubakar Malami (SAN), has withdrawn the demand for N242.24bn and $1.28bn tax arrears from the company.
MTN Nigeria said in a statement last Friday that its legal counsel received a letter dated January 8, 2020 from Malami formally withdrawing his demand.
It said the letter confirmed that following a careful review and due consultation with relevant statutory agencies, the AGF had decided to refer the matter to the Federal Inland Revenue Service and the Nigeria Customs Service.
MTN Nigeria said it would consequently follow due court process to withdraw its legal action against the AGF and engage with the FIRS and the NCS on the issues.
The Chief Executive Officer, MTN Nigeria, Ferdi Moolman, said, “We are very pleased with the decision of the AGF and we commend him for his wisdom.”
Malami, in a statement by his spokesperson, Dr Umar Gwandu, last Friday, said he had transferred the handling of the tax dispute between the Federal Government and MTN to the FIRS and the NCS.
Gwandu said the minister had informed the MTN of his decision through a letter dated January 8, 2020 addressed to MTN’s counsel, Chief Wole Olanipekun (SAN).
The statement said in part, “With this the AGF and Minister of Justice demonstrates unflinching commitment to the rule of law where all statutory agencies will be allowed to independently work with a view to fulfilling their mandates and recourse to them in contentious cases, as regulatory agencies of government on issues that border on their statutory mandate.”
A Federal High Court Lagos had in October adjourned hearing until January 30 and January 31, 2020 on a suit filed by MTN Nigeria against the AGF over alleged N242bn and $1.3bn import duties and withholding tax assessments.
MTN sued Malami in September 2018 in protest against an August 20, 2018 letter in which the AGF demanded that the telecom firm should pay N242bn and $1.3bn as import duties, withholding and value added taxes.
The firm’s lawyer, Chief Wole Olanipekun (SAN), described the AGF’s N242bn and $1.3bn demand from MTN as “malicious, unreasonable and one made on an incorrect legal basis.”
Olanipekun said in writing the demand letter to MTN, Malami acted beyond his powers and violated the provisions of Section 36 of the constitution on fair hearing with “the purported revenue assets investigation” he carried out on the firm’s activities covering 2007 to 2017.
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