Tue, 08 Aug 2017 10:48:50 +0000
By Nation Reporter
MTN Zambia has finally paid the Zambia Revenue Authority K95,413,369, the equivalent of more than US$10 million in unpaid taxes for non-compliance with Value Added Tax returns.
A source disclosed to the Daily Nation that ZRA managed to collect the amount charged with respect to the Notice of Assessment to the value of K95,413,369.
MTN Zambia Head – Legal and Regulatory, Mwenzi Mulenga said the company would not give any comment on the matter.
Earlier, ZRA had frozen three major accounts for the mobile service company owing to MTN Zambia’s alleged fraudulent activities including failure to pay taxes amounting to over K95m in Value Added Tax and penalties.
On July 24th, 2017, MTN Zambia woke up to a rude shock when they could not access their bank accounts with FNB Bank Zambia, Stanbic Bank and Stanchart Bank as the facilities had been frozen following a garnishee order issued by the Lusaka High Court.
MTN had attempted to protest the demand notice by appealing to ZRA Commissioner-General. But that application lamentably failed.
MTN wrote to ZRA to demand immediate settlement of over K90m in unpaid dues in taxes, penalties, interest and lieu of prosecution due to delayed payment.
MTN Zambia CEO Charles Malopasi has again suffered a major loss for a company under his control after a similar misadventure befell MTN Nigeria when it was involved in a SIM registration mishap that was fined US$3.9 billion for failing to follow procedures and regulations in the West African country.
ZRA issued a demand notice in the amount of K95,413,369 as due payment owed under the VAT Act, but also disclosed that there was a wrong claim of over K13,796,806 without supporting invoices.
The ZRA Commissioner-General rejected an appeal against the assessment which included claims that the mobile service company put in claims of over K13m that was unsubstantiated.
MTN ran to the Constitutional Court with a petition against ZRA’s action to freeze its accounts with claims that it had paid in full all its tax dues.
MTN has however withdrawn the petition filed against the freezing of its accounts in which it contended allegations of unpaid taxes despite its own admission that the mobile service company claimed the amount of K13, 796,806 erroneously.
According to the court documents filed on 25th July, 2017, MTN senior manager of finance Aaron Mwamba admitted the company had made an additional claim of K13, 796,806 in unsubstantiated claims under VAT by error.
Mr Mwamba explained that MTN became aware of the frozen accounts when they could not access their company accounts held with FNB Bank Zambia Limited, Stanbic Bank and Stanchart Bank respectively.
The mobile service provider objected the move by ZRA Commissioner-General claiming that MTN had correctly pushed in claims for the K13,796,806 within its entitlements at law, and that it “was not an attempt to make a fraudulent recovery of tax.”
