Multichoice Has Been Ordered To Pay N900 Billion To The Federal Inland Revenue Service (FIRS) By September 23
Multichoice has been ordered to pay N900 billion to the Federal Inland Revenue Service (FIRS) by September 23
It has been ordered by the Tax Appeal Tribunal (TAT) sitting in Lagos to pay back 50 percent (N900 billion) of the N1.8 trillion in tax that it allegedly owed to the Federal Inland Revenue Service. Multichoice, the parent company of DSTV, is based in Lagos (FIRS).
Abdullahi Ismaila Ahmad, a spokesperson for the FIRS, confirmed the information. A further order was issued requiring the company to pay a sum equal to 10% of the deposit (N90 million), which, together with the N900 billion, would serve as a condition precedent for the appeal to be heard again.
Remember that the Federal Inland Revenue Service (FIRS) ordered commercial banks to freeze and recover over N1.8 trillion in taxes from MultiChoice Nigeria Limited (MCN) and MultiChoice Africa Limited (MCAL) in July (MCA).
It is alleged by the service that MultiChoice, the owners of the popular satellite television service DSTv, has consistently violated all agreements and undertakings with the Service.
In addition
They added that their performance did not reflect in their tax obligations or compliance level in the country, and that when FIRS requested access to their servers for auditing, Multichoice refused.
Multichoice has responded by stating that the allegations made by the commission are unfounded. It went on to say that it was fully engaged in a transparent process with the FIRS and that it was confident that the matter would be resolved amicably.
“The matter appears to be based on unfounded allegations that MultiChoice Nigeria has not fully disclosed to authorities all of its existing subscribers,” the South African company said in a statement on Monday.
Nonetheless, at a rescheduled hearing on Tuesday, following an application filed with the tribunal by the counsel for the Federal Investigation Revenue Service, A.B. Ahmed, the chairman of the Tax Appeal Tribunal, ordered Multichoice to pay half of what is allegedly owed before the appeal could be continued.
According to the chairman, this was a requirement under Paragraph 15(7) of the Fifth Schedule to the Financial Institutions Regulatory Authority of India Act (2007). As required by the Act, Multichoice, as well as any other taxpayer who disputes their tax assessments, is required to make the statutory deposit as a condition of proceeding with the appeal before the Tax Appeals Tribunal (TAT).
According to Abdullahi Ismaila Ahmad, a FIRS spokesperson, Multichoice filed the lawsuit in the Lagos TAT after the agency issued notices of assessment and a demand note in the amount of N1, 822, 923,909,313.94k on April 7, 2021, prompting the company to file the lawsuit.
Conclusion
To this end, the FIRS petitioned the TAT through its counsel, pleading with the court to order Multichoice to make the statutory deposit of 50% of the disputed sum, as required by law.
After hearing both sides of the argument, the tribunal upheld the FIRS submission and ordered Multichoice to deposit 50 percent of the disputed sum plus an additional 10 percent of the deposit as a condition for the appeal to be heard again. The tribunal then adjourned the case until September 23, subject to the parties' compliance with the tribunal's decision.
