The Accra High Court has upheld the GH¢19 million tax liability imposed by the Ghana Revenue Authority on Scancom PLC, the owner of MTN Ghana. The court presided over by Justice Afi Agbanu Kudomor, ruled that GRA did not make any legal errors when imposing a Value Added Tax (VAT) liability on Scancom PLC for Imported Services between 2014 and December 2017. The court also supported GRA's application of the Ghana Educational Trust Fund Levy and National Health Insurance Levy each of 2.5 percent on the imported services, regardless of whether they were used for Taxable or Exempt supplies.
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Additionally, the court stated that GRA did not err in law when imposing the National Health Insurance Levy and Ghana Education Trust Fund Levy on Scancom PLC’s Imported Services from August 2018 to December 2018, irrespective of their use for Taxable or Exempt services. The court ruled against Scancom PLC's appeal, stating that there would be no order as to costs and each party was to bear its own costs.
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In 2020, GRA conducted a comprehensive tax audit on MTN Ghana, focusing on various aspects of the company's business. Scancom PLC, unhappy with the tax liability imposed, took GRA to court, seeking to reverse the decision and requesting relief from additional VAT, penalty, and interest on imported services used for its telecommunication business.
As part of its legal action, Scancom PLC sought to reverse the decision to impose an additional Ghana Education Trust Fund Levy and National Health Insurance Levy of GH¢8,793,598.00 and penalty and interest of GH¢10,933,119 on imported services utilized by Scancom PLC for its telecommunication businesses, as well as quash the disputed tax assessment.
SOURCE:
-GHANA WEB- "Court Upholds GRA’s GH¢19 Million Tax Liability Imposed On MTN Ghana"
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