FIRS, MTN Bicker over Tax Deductions

Federal Inland Revenue Service (FIRS) and MTN Nigeria are in another tax dispute over deductions of taxes from its 2015 record fine.

This is coming days after Babatunde Fowler, chairman, FIRS, accused MTN Nigeria of deducting tax from the N330 billion fine imposed by the Nigerian Communications Commission (NCC).

Fowler maintained that fines and penalties for regulatory infractions were revenues paid to the Federal Government and should not be subjected to any tax deduction.

Fowler, in an interview with Premium Times, queried why MTN Nigeria considered fine and penalty as tax-deductible. He said FIRS’ position was that MTN cannot remove tax from the fine imposed on it by the federal government.

“The alternative is for MTN to go to court and let the court (maybe Supreme Court) say the FIRS was wrong, and that such fines or penalties are tax-deductible,” the online platform quoted Fowler as saying.

MTN Nigeria in a corporate filing on Monday, August 4, acknowledged that there is a technical disagreement between it and the Federal Inland Revenue Service (FIRS) as to how the fine should be treated for tax purposes.

Uto Ukpanah, MTN Nigeria secretary, said the company remains fully complaints with Nigerian tax laws and will abide by the findings of the tribunal on the matter.

“We acknowledge that there is a technical disagreement between MTN and the Federal Inland Revenue Service (FIRS) as to how the fine should be treated for tax purposes.

“However, while the monies have been paid to FIRS, we have taken the disagreement to the Tax Tribunal set up by FIRS Chairman and Minister of Finance, and are awaiting a decision.

“MTN remains fully compliant with Nigerian tax laws and will abide by the findings of the tribunal. The company is committed to meeting its fiscal responsibilities and contributing to the social and economic development of Nigeria.”

The telecom firm said it has paid more than N1.7 trillion in taxes, levies, and fines to the government since 2001.