MTN drags CBN, AGF to court over tax arrears, forex repatriation

Telecom giant, MTN Nigeria, has dragged the Central Bank of Nigeria and the Attorney General of the Federation, Abubakar Malami (SAN) to court over the probe into the telecom company’s certificate of capital importations and unpaid taxes, respectively, amounting to $8.1billion.
The CBN had alleged improper dividend repatriations by MTN Nigeria and requested that the $8.1 billion be returned to the apex bank’s coffer.
Six days later, the AGF claimed that the company did not pay taxes on foreign payments and imports, and therefore directed that approximately $2.0 billion in relation to these taxes be paid to the federal government.
And to all of these claims, the telecom giant said it was not culpable.
And to further prove its innocence, the telecom giant, in a suit filed yesterday at the Federal High Court, is asking for injunctive relief restraining the defendants from taking further action in respect of their orders.
Disclosing this in a statement by MTN’s Public Relations Manager, Funso Aina, the company said the decision was to protect its assets and shareholders’ rights within the ambit of the law, “while we continue to engage with the relevant authorities on these matters.” Also speaking on the matter, Corporate Relations Executive of the MTN, Tobe Okigbo said, “the allegations being made involve issues that appear to be complex, and so are easily misunderstood and misinterpreted.
“They are made even more confusing when the relevant authorities send conflicting messages and instructions and act in a way that appears un-coordinated and at cross purposes.
“The simple reality is that MTN Nigeria has never repatriated dividends on the CCIs referenced by the CBN and that MTN is fully compliant with Nigerian tax law.
“With situations like this, it is vital for both the government, regulators and the company to have absolute clarity on the nature of both the allegations being made and the processes that are being followed.
“In the absence of this clarity, our only option is to seek judicial intervention and to ask the courts to act as adjudicator.
This has been done today.” “MTN remains fully committed to Nigeria and remains resolute that the company has not committed any offences and will continue to defend its position vigorously.
“The company will continue engaging with the relevant authorities, and further information will be provided as and when available,” the statement added