The dispute between MTN and the Uganda Revenue Authority (URA) over about $71 million in purported unpaid taxes continues.

The company believes the assessment does not accurately reflect its operations or compliance with tax obligations.

MTN Uganda announced its financial results for the nine months ended September 30, 2024 today, and informed shareholders it is continuing to engage the URA in "constructive dialogue" and is hopeful that the ongoing discussions will result in a fair conclusion.

The ongoing tax standoff stems from August 2023, when URA launched a tax investigative audit of the telecom sector, including MTN Uganda, to assess the sector's tax compliance for the years 2018-2022.

MTN says it has cooperated fully throughout this process, giving extensive data and required clarifications to URA in a timely and transparent manner.

According to reports, the tax assessment is entirely based on MTN Uganda's unpaid taxes on trillions of dollars in international and domestic phone calls.

The unremitted taxes were originally set at $410 million (Shs 1.5 trillion), but were eventually decreased to $71 million (Shs 260 billion).

“MTN maintains that the revised assessment does not accurately reflect our operations or compliance with tax obligations. We are continuing to engage the URA in constructive dialogue and are confident that the ongoing discussions will result in a fair resolution,” says the telco..

It adds: “MTN assures its subscribers, stakeholders, and the general public that we remain a responsible corporate citizen. We uphold the highest standards of corporate governance and are fully compliant with all legal and regulatory obligations.”

The development comes as governments are being urged to help rebalance the digital ecosystem and promote more equitable business conditions, such as eliminating sector-specific regulatory and fiscal requirements and rationalising tax structures.

The Global System for Mobile Communications, which represents telcos globally, issued the plea, stating that laws and regulations should be based on internationally accepted standards.

Six African CEOs of Africa's major telecoms companies have also encouraged governments to reconsider tax policies.

The six CEOs, Segun Ogunsanya, then CEO of Airtel Africa Group, Hassanein Hiridjee of Axian Group, Frehiwot Tamru of Ethio Telecom, Ralph Mupita of MTN Group, Jerome Henique of Orange Middle East and Africa, and Shameel Joosub of Vodacom Group, stated that tax rationalisation for the mobile industry must be achieved through targeted fiscal policy reforms that support economic growth.

The group said in a statement: “Success is a team game. And further political support, across the continent, is essential to register meaningful progress.

“This includes facilitating the right market structures and conditions to avoid unnecessary fragmentation and policies that support the investment environment needed for success.”