Compiled by TV10 Investigative Desk
MTN Uganda has accused the Uganda Revenue Authority (URA) of using “coercive tactics” to extract USh 260 billion ($68.4 million) in an “unfounded” tax assessment.
In a strongly-worded letter to David Kalemera, Head of State House Revenue Intelligence and Strategic Operations Unit, MTN Uganda’s CEO Sylvia Mulinge urged intervention, citing “corrupt intentions” and threats to the telecom’s financial stability.
URA recently through it’s Tax Appeals Tribunal has made a ruling in which MTN Uganda is ordered to pay over Shs20bn in taxes to Uganda Revenue Authority (URA). URA carried out an audit and discovered that MTN Uganda had not paid VAT amounting to Shs20, 053,441,670 for the period 2014-2017.
Background of the Dispute
URA’s assessment was based on information from SafariTech, a Kenyan consultancy firm. SafariTech claimed MTN Uganda owed USh 1.5 trillion ($397 million) in undeclared taxes over five years. However, MTN Uganda provided evidence proving the assessment’s inaccuracy, leading URA to adjust the figure to USh 260 billion.
Concerns Raised by MTN Uganda
URA’s actions are a “blatant abuse of power” and reflect “corrupt intentions” to exploit legal frameworks for financial gain.The assessment threatens MTN’s financial stability and jeopardizes investor confidence in Uganda.
URA’s tactics undermine the country’s investment appeal and send a message that compliant taxpayers are vulnerable to arbitrary actions.
Previous Tax Disputes
In 2020, MTN Uganda paid $100 million (USh 370 billion) to renew its operating license, despite the Uganda Communications Commission approving $58 million.
Call to Action
MTN Uganda requests the State House Revenue Intelligence and Strategic Operations Unit to intervene immediately to prevent abuse of legal processes and ensure URA operates fairly and transparently.
The situation highlights the need for transparency and fairness in tax administration to maintain investor confidence in Uganda.
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