An Accra High Court? has affirmed a GHC 19 million tax liability imposed by the Ghana Revenue Authority on Scancom PLC, owners of MTN Ghana.? The Court presided over by Justice Afi Agbanu Kudomor upheld that GRA did not err in law when it imposed a Value Added Tax (VAT) liability on Scancom PLC for Imported Services between 2014 to December 2017.? The court also said GRA did not arbitrarily when it applied the Ghana Educational Trust Fund Levy and National Health Insurance Levy each of 2.5 per cent on the imported services by Scancom PLC irrespective of whether Scancom PLC's imported services were used to produce Taxable or Exempt supplies. GRA, therefore did not err in law when it imposed the National Health Insurance Levy and Ghana Education Trust Fund Levy (together with interest and penalties) on Scancom PLC's Imported Services from August 2018 to December 2018 irrespective of whether they were applied to Taxable or Exempt services. The? Court said it was for these reasons that the instant Tax Appeal failed and there would be no order as to costs, each party was to bear its own costs.? In 2020, the GRA commenced a comprehensive tax audit on MTN Ghana, spanning the period from January 2014 to December 2018. The audit focused on all aspects of MTN's business including Input Value Added Tax claims related to goods and services procured by MTN Ghana, Value Added Tax on services imported by the company and Input Value Added Tax claims related to office premises constructed by the telecom giant. Scancom PLC unhappy about the method of arriving at the tax liability dragged GRA to Court insisting that the Authority erred in law and acted arbitrarily by imposing the tax liability order on the company for the period January 2014 to December 2017. As part of the reliefs, Scancom PLC wanted an order reversing the GRA's decision to impose additional VAT of GHS8,793,598.00 and penalty and interest of GHS10,933,119 on imported services utilized by Scancom PLC for its telecommunication business. 'An order reversing the Respondent's decision to impose additional Ghana Education Trust Fund Levy and National Health Insurance Levy of GHC6,379,483.00 and penalty and interest of GHC2,566,124.00 on imported services utilized by the Appellant for its business,' the reliefs said. It also sought an order quashing the parts of the Current Tax Assessment relating to the heads 'Disputed Assessment', and overturning the Objection Decision by Respondent as it relates to those parts and other order(s) that the justice of the case requires,' Scancom PLC stated as part of its reliefs sought at the Court.? Source: Ghana News Agency