N1.82trn tax default: MultiChoice succumbs to FIRS demands

MultiChoice Nigeria has succumbed to the demands of the Federal Inland Revenue Service (FIRS) to audit its company accounts over tax-related issues that has led to multiple court cases.

The cable TV company had filed cases at a court and with the Tax Appeal Tribunal (TAT) against the FIRS, in a bid to prevent the assessment on their adherence to tax obligations in Nigeria.

This follows the appointment of banks in July 2021 to recover N1.82 trillion tax bills reportedly owed by the parent company of DSTV, which was accused of tax evasion. MultiChoice was also alleged not to have paid $342 million value-added tax (VAT).

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In the same month, Ripples Nigeria had reported that Multichoice denied the allegation, but FIRS chairman, Muhammad Nami, ordered the restriction of MultiChoice, stating that the tax agency has been denied access to the server to audit the South African company.

Eight months later, MultiChoice has agreed to an out-of-court settlement, which will see the company withdraw its lawsuits, and grant FIRS access to its accounts, a joint press statement on Wednesday disclosed.

“By the broad terms of the agreement, MultiChoice shall withdraw all pending lawsuits towards an amicable resolution of the dispute. Also, as part of the agreement, the FIRS commenced a Forensic Systems Audit of MultiChoice accounts on Tuesday, 8 March 2022 to determine the tax liability of the company,” FIRS and MultiChoice said.