Tax dispute: MultiChoice agrees to pay N35bn to FIRS

MultiChoice Group has agreed to pay N35.4 billion as part of its tax obligations to the Federal Inland Revenue Service (FIRS).

Multichoice owns the satellite television services, DStv and GOtv — popular subscription-based platforms in Nigeria.

In a statement to shareholders on Thursday, the firm said the payment is to offset against “security deposits”.

“Shareholders are advised that MultiChoice has reached a settlement with the FIRS in Nigeria in relation to the tax assessments raised in April 2021 on MultiChoice Nigeria (MCN) and in June 2021 on MultiChoice Africa Holdings BV (MAH),” the company said.

“The parties (FIRS, MCN and MAH) concluded a ‘without prejudice or precedent’ agreement in full and final settlement of all matters in dispute. In terms of the agreement, MCN and MAH shall pay a total tax amount of NGN35.4bn (~US$37.3m), to be offset against the security deposits and good faith payments made to date.”

In 2021, FIRS issued notices of assessment and demand notices in the sum of N1.82 trillion as tax bills.

The agency appointed some commercial banks as agents to recover the amount.

However, MultiChoice disputed the assessments and approached the tax appeal tribunal (TAT), which led to a series of cases at both the TAT and the federal high court.

Multichoice further instituted a court action on August 25, 2021, challenging the assessment of FIRS over unpaid value-added tax (VAT) amounting to $342 million.

Seven months after the challenge, FIRS and MultiChoice Nigeria agreed to an amicable resolution over pending tax disputes.

As part of the agreements, MultiChoice was to withdraw all pending lawsuits, while FIRS was to conduct a forensic system of the company’s accounts.

Debater:
The only 3 things wey I go talk be say:

1. Omo ₦35B no be small money chai
2. Make una dey patronise Nigerian companies
3. DsTV dey mad, dem just dey increase money anyhow
Happy Sunday

naptu2:


https://www.thecable.ng/tax-dispute-multichoice-agrees-to-pay-n35bn-to-firs/amp

duduade:
Them no wan pay tax
But when it's time to increase prices of bouquets, e no dey hard them

They can collect but can not give

Vinnie2000:


Multi-Choice are Trying honestly.

The Economy of this Bulaba govt is NOT friendly to both small and Large scale businesses.

But why did They go off air in that Super Eagles vs South Africa match,
when Their Player was about to Play his Penalty

NzogbuNzogbu:
Dem just dey pour money for drum when no dey full

If tinubu no see anything do with subsidy money, this one no reach am spend on frivolities

brain54:
35 billion...

These people are making money from Nigeria Sha.

Money they repatriate to their country.

I doubt they make that much money In South Africa. Or any other country for that matter. (I will check for data on this) And the thing is they are always complaining of how difficult it is to do business in Nigeria. Hiking prices at the slightest opportunity.

It's a shame Nigeria do not have an indigenous cable TV provider.

Nigerian business men... Are you sleeping?

naptu2:


https://www.thecable.ng/tax-dispute-multichoice-agrees-to-pay-n35bn-to-firs/amp

Probity100:
It is still peanut compared to what they get monthly from subscriptions.
For example if 1,000,000 subscribers from offices and companies pay 25k for subscriptions that's 25B naira...
Let's take a kook at household's for the smallest subscriptions of 2,500....say about 10m homes in Nigeria that's another 25B naira...minimum.

They will be making up to 100B naira monthly.......

Jen002:
That's a lot of money tho