The largest wireless carrier in Africa, MTN Group Limited, according to Bloomberg has declared that a tax bill for GH8.2 billion ($672 million) it received from the Ghana Revenue Authority (GRA) has been cancelled.

According to a filing by MTN on Friday, the decision was reached following "extensive and productive discussions" over the course of a 21-day negotiation period between the revenue authority and the mobile phone provider (February 3, 2023).

The Ghana Revenue Authority surprised Ghana's largest corporate taxpayer last month with an unexpected claim for the years 2014 to 2018. This led to the decision to drop the tax payment.

The potential fine represented about 5% of MTN’s market capitalisation and the government’s decision “removes a threat to this year’s shareholder returns,” Bloomberg Intelligence analyst John Davies said in a note.

Some of the biggest firms in the country have been under pressure from the Authority to pay millions in overdue taxes.

Similar bills were sent to Gold Fields Limited, Kosmos Energy Limited, and Tullow Oil Plc.

The businesses all refute the government's assertions.

Ghana's rising debt and high loan servicing costs prevented it from accessing foreign capital markets.

The government has been forced to allocate most of its revenue to service an estimated GH¢576 billion of public debt.

It is restructuring most of its obligations amid a slump in the cedi and is seeking a $3 billion loan from the International Monetary Fund (IMF).