This is an unexpected turn in a long-running dispute over taxes
Vodacom Congo has issued a statement saying that the Directorate General of Taxes (DGI) officials sealed up its technical, commercial, and administrative offices on 6 and 7 December. The DGI has also frozen Vodacom Congo’s bank accounts, according to the statement which the operator said was issued in response to posts on social media.
Outstanding amounts
Vodacom said the action relates to an audit, instigated by the tax authority, covering 2016 to 2019, after which the operator was ordered to pay $243 million (£201 million €233 million).
Vodacom argued this was inaccurate, citing “relevant tax legislation” andthe authority reduced the bill to $165 million in August 2022.
However, the operator was not happy with this sum either and launched an appeal against it in November. The DGI responded by “initiated bulk actions of forced recovery of the unadjusted sum,”.
The operator said this action is “against all expectations” and claims that the freezing of its bank accounts and sealing of its premises is “in flagrant violation” of legal procedures. It also stated its intention to continue to contest the tax bill and other accusations against it via legitimate legal channels.
The operator has also been at pains to stress that it will ensure its networks and services are not disrupted by the DGI’s action.
An unhappy history
Vodacom is not the only operator engaged in a tax dispute with the Congolese authorities, but the disagreements have become more heated since the government introduced a new tax regime early in 2022. This imposes fees on data usage, messages and voice minutes.
The operators rejected this change and declines to pay the first instalment – a total believed to be some $180 million.
Reportedly, the government then confiscated the passports of some executives from Vodacom, as well as Africell, Airtel and Orange and had travel bans imposed on them.ory
Telecom Titans reports that previous disputes led to the jailing of Vodacom Congo, CFO, Oomar Chutoo in 2020 for four days, accused of forgery and falsification of financial statements.
A year later, a Vodacom engineer was jailed having been accused of fraud related to the L’Autorité de régulation de la poste et des télécommunications’ (ARPTC) controversial registry of mobile devices. The engineer allegedly had erased some files it had seized.
Vodacom said the arrest was “arbitrary” and amounted to intimidation.
The operator ended its statement pertaining to the closure of its premises and freezing of its bank accounts with a reminder that to “the public and all authorities that it is and remains a good corporate citizen, respectful of the laws and regulations in force in the Democratic Republic of Congo, as its services always show a high sense of fiscal civic-mindedness and that it rigorously applies the policy of good governance, respect for the rule of law and transparency.”