A Tax Appeal Tribunal sitting in Lagos on Tuesday ordered Multichoice Nigeria Limited to pay 50 per cent of the N1.8tn which the Federal Inland Revenue Service determined to be the amount the company has evaded in tax payments.
This was disclosed in a statement issued on Wednesday by the Director, Communications and Liaison Department, FIRS, Abdullahi Ahmad.
The statement was titled, “Tax Evasion: Tribunal Orders DSTV To Pay 50% Tax Backlog Before Hearing Appeal”
It read in part, “A Tax Appeal Tribunal (TAT) ordered Multichoice Nigeria Limited, owners of popular cable television services, DSTV, to pay 50 per cent of N1.8 trillion which the Federal Inland Revenue Service (FIRS) has determined through a forensic audit to be the amount in taxes that Multichoice Nigeria Limited had failed to pay to the Government of Nigeria in past assessment years.”
Recall that in July, the FIRS appointed some commercial banks to recover the sum of N1.8tn from Messrs MultiChoice Nigeria Limited and MultiChoice Africa.
The Service noted the appointment was necessitated by the group’s continued refusal to grant FIRS access to its servers for audit, the companies’ persistent breach of agreements and undertakings with the Service, under-remittance of taxes, among other things.
According to the statement, the five-member TAT led by its Chairman, Professor Ahmed, issued the order following an application to it by the Counsel to FIRS.
“The Counsel made the application under Order XI of the TAT Procedure Rules 2010 which requires Multichoice, or any other taxpayer who disputes their tax assessments, to make the statutory deposit required under Paragraph 15(7) of the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act 2007 (FIRS Act) as a condition that must be fulfilled before the prosecution of the appeal brought before TAT.
“In certain defined circumstances to which the Multichoice appeal fits, Paragraph 15(7) of the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act 2007 (FIRS Act) 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.
The application by the Counsel to the FIRS was in response to a notice of appeal filed by Multichoice.
