In order to raise money and finalise a bailout from the International Monetary Fund(IMF), the cash-strapped government is asking some of the biggest corporations in the country to pay millions of dollars in unpaid taxes .
Tullow Oil Plc, Africa’s leading wireless carrier MTN Group Ltd., as well as Gold Fields Ltd., Kosmos Energy Ltd., and other companies have received notices that they owe back taxes.
The businesses all dispute the government’s claims.
Government has been forced to allocate most of its revenue to service an estimated 576 billion cedis ($48 billion) of public debt.
“Ghana is clearly facing fiscal and economic challenges at the moment,” Gold Fields spokesman Sven Lunsche said in an emailed response to questions.
“We are hopeful that the government will not resort to unreasonable fiscal measures that will further imperil the challenges facing the corporate sector.”
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The second-largest economy in West Africa was unable to access international finance markets due to its spiraling debt and loan service costs.
In response to a decline in the cedi, it is restructuring the majority of its debts and applying to the IMF for a $3 billion loan.
Gold Fields is attempting to resolve the demand for 2018 to 2020 through discussions with the national tax authority. MTN has until Friday to reach a deal with Ghanaian authorities about the $776 million fine.
Dallas-based Kosmos Energy stated that the government alleged it had failed to meet its contractual tax and financial responsibilities.
The assertion is false, and if necessary, Kosmos will “vigorously dispute” it. Kosmos and Gold Fields both declined to provide financial details.
When approached via phone, a spokesperson for the Ghana Revenue Authority declined to respond.
Source: Myjoyonline
