ACCRA – The Commercial Division of the High Court in Accra has ruled in favor of the Ghana Revenue Authority (GRA) over a GHS19 million (USD1 = GHS11.9450) tax dispute with Scancom PLC (MTN Ghana), setting a precedent that could impact future tax compliance and litigation strategies within Ghana’s business community.

The court’s decision, which was aligned with the GRA’s application of VAT Act 870, pertained to MTN Ghana’s operations from January 2014 to December 2017. The telecom giant had previously attempted to challenge the tax claim on November 9 but was unsuccessful. The ruling has significant implications for how companies in Ghana handle taxes on imported services, particularly those that operate in both taxable and exempt sectors.

Further solidifying the GRA’s stance, today’s verdict supported the authority’s taxation of MTN Ghana as a partial exempt trader for its mobile money operations spanning August to December 2018. The court referenced several acts, including Act 870 (VAT), Act 971 (National Health Insurance), and Act 972 (Education Trust Fund), confirming that mandatory levies were correctly applied at a rate of 2.5% each for the Ghana Educational Trust Fund and National Health Insurance Levy on imported services. These levies were imposed regardless of whether the services were used in taxable or exempt activities.

The legal battle concluded without any cost orders being issued, but it marks a critical juncture for MTN Ghana and other businesses that engage in similar practices. This case clarifies the tax obligations of companies classified as Partial Exempt Traders under Ghanaian law, especially concerning their telecommunication and mobile money services.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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