Multichoice Nigeria Limited has been ordered by a Tax Appeal Tribunal sitting in Lagos to deposit N900 billion which is 50% of the N1.8 trillion tax dispute with the Federal Inland Revenue Services (FIRS), according to a statement by FIRS spokesman, Abdullahi Ahmad.
FIRS through a forensic audit had determined that Multichoice the owner of the satellite televisions, DStv and Gotv, popular subscription-based platforms in Nigeria failed to pay N1.8 trillion to the Nigerian government in the past years.
Ahmad said that the order to pay the 50% was 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.
“The FIRS counsel made the application under Order XI of the TAT Procedure Rules 2010 which enables a party to make an application at any stage of the proceedings,” Ahmad said.
“Counsel to FIRS drew 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 Nigeria Limited to deposit with the FIRS 50 per cent 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 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.”
Multichoice filed the case at the Lagos TAT following its dispute over the agency’s issuance of Notices of Assessment and Demand Note in the sum of N1,822,923,909,313.94 on April 7, according to the FIRS spokesman.
The TAT also asked Multichoice to pay 10% of the deposit as a condition precedent for further hearing of the appeal.
TAT adjourned the appeal to September 23 for a report of compliance with its order and continuation of the hearing, which is subject to compliance with the Tribunal’s order.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
