MultiChoice Nigeria has released a statement debunking what it sees as misinterpretation of the ruling, yesterday, of the Tax Appeal Tribunal (TAT) which looked into the tax evasion charges laid against it by the Federal Inland Revenue Service (FIRS).
According to the company, “MultiChoice Nigeria has noted today’s media statement on the Tax Appeal Tribunal (“TAT”) appeal hearing held on 24 August 2021.
The direction issued by the TAT does not compel MultiChoice Nigeria to make payment of 50% of N1.8 Trillion, being half of the disputed tax assessment which is under appeal.”
Some media reports had informed that the digital satellite media operator was asked to pay N900 billion, being 50% of the disputed amount of N1.8 trillion the FIRS said it owed in tax returns.
In the statement, MultiChoice Nigeria clarified that the direction issued by the TAT in accordance with paragraph 15(7) of the Fifth Schedule to the FIRS Establishment Act, requires MultiChoice Nigeria to deposit with FIRS an amount equal to the tax paid by MultiChoice Nigeria in the preceding year of assessment, or 50% of the disputed tax assessment under appeal, whichever is the lesser amount plus 10%.
The company made its choice. “The lesser amount is the tax paid by MultiChoice Nigeria in the previous assessed year which is substantially less than the disputed assessment.”
MultiChoice Nigeria is a law-abiding corporate citizen and continues to engage constructively with FIRS in an attempt to resolve this matter.”
It will be recalled that Multichoice had filed the matter at the Lagos TAT following its dispute over FIRS’ issuance of Notices of Assessment and Demand Note in the sum of N1.82 trillion on April 7, 2021.
The amount constitutes what the FIRS calculated as due in taxation to the federal government from the company after an investigation over several months to determine the extent to which Multichoice is indebted in tax remittance in Nigeria.
The counsel for FIRS had drawn the attention of the Tribunal to Paragraph 15(7) of the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act 2007 and urge the tribunal to direct Multichoice to deposit with the FIRS 50% of the amount of the assessment under appeal as security and a condition that must be fulfilled before the prosecution of the appeal brought before the tribunal.
FIRS Act 2007 requires persons or companies seeking to contest a tax assessment to pay all or a stipulated percentage of the tax assessed before they can be allowed to argue their appeal contesting the assessment at TAT, the statement added.
