The claim by the Federal Inland Revenue Service (FIRS) that the Tax Appeal Tribunal (TAT) has ordered MultiChoice Nigeria to pay N900bn, the equivalent of 50 per cent of the N1.8trn it is alleged to owe in taxes before a dispute over the figures could be heard by the TAT is incorrect and incompatible with the provisions of FIRS Establishment Act the service said it relied on.
A statement by Multichoice addressing the act and proceedings of the Tax Appeal Tribunal which sat on Tuesday said the earlier statement by the FIRS is wrong and misleading.
“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 per cent of N1,8 Trillion, being half of the disputed tax assessment which is under appeal.
“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.”
