(Ecofin Agency) - In Niger, the general tax directorate and the telecom firm Orange Niger finally reached an amicable settlement in regard to the tax dispute between them since November 29, 2018.
According to sources close to the firm, Orange Niger agreed to pay part of the fund the directorate required from it as part of Orange Niger’s debt toward the tax office.
Indeed, the general directorate slammed a XOF22 billion tax adjustment on Orange Niger and, this adjustment was followed by the close down of the company’s offices on December 7, 2018, for "nonpayment of taxes".
Following the closure, the telecom operator that was contesting that adjustment published a statement. It informed that since it launched its activities in 2008, it always fulfilled its "fiscal duties according to the rules and regulations in force in Niger as the tax certificates delivered by the general tax directorate show”. The company also estimated that the adjustment was exorbitant because it represents "about 50% of its turnover, even though since its creation, it has maintained a constructive dialog with authorities”.
For these reasons, the company which created over 52,000 direct and indirect jobs in Niger was planning to assert its rights. Fortunately, an agreement has been reached for the common good of every party.
Let’s note that Orange Niger was not the only telecom company to be slammed with a tax adjustment. Airtel Niger, which was also in the same situation as Orange Niger, had to quickly reach an amicable settlement with the tax administration.