Multichoice Nigeria Limited has said that the directive issued by the Tax Appeal Tribunal (TAT) does not compel it to make deposit of 50% of the N1.8 trillion tax dispute.
The company said this in a statement on Wednesday in its reaction to the order issued by a five-member Tax Appeal Tribunal led by Professor A.B Ahmed, the Chairman, following an application to the TAT by the counsel to FIRS.
After the ruling by the TAT, sell-off ensued on the shares of the Johannesburg based company, with $240 million wiped off of the market value in less than two hours, according to Bloomberg.
The shares however is recovering on Thursday, following Multichoice’s claim that it is not compelled by the ruling to make the deposit.
Source: Money Web
“MultiChoice Nigeria has noted today’s (yesterday) media statement on the Tax Appeal Tribunal (“TAT”) appeal hearing held on August 24,2021.. the company said.
‘’The direction issued by the TAT does not compel MultiChoice Nigeria to make payment of 50 per cent of N1,8 trillion, being half of the disputed tax assessment which is under appeal.
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‘’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 one half of the disputed tax assessment under appeal, whichever is the lesser amount plus 10%.
‘’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.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
