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IIheonu Nkechi Gloria 2 years ago
MultiChoice Nigeria Limited said Thursday that it has paid N8 billion in two tranches to the (FIRS) account as required by the law guiding disputes over tax evasion.
MultiChoice, the parent company of popular subscription-based platforms in Nigeria- DSTV and Gotv, made this known at the resumption of the tribunal hearing over a tax evasion dispute with the FIRS.
The FIRS claims that MultiChoice owes back taxes worth N1.8 trillion, a claim the company disputes.
The company is however required by Paragraph 15(7)(c) of the fifth schedule of the FIRS Act, 2007, to pay 50 percent of the tax paid the previous year plus 10 percent mark-up as security before prosecuting an appeal.
At the last hearing, the Tax Appeal Tribunal had upheld the FIRS submission and directed MultiChoice to deposit with the FIRS an amount equals 50 percent of the assessment under the appeal plus a sum equal to 10 percent of the said deposit as a condition for further hearing of the appeal.
The directive had generated confusion among stakeholders as FIRS had asked the company to pay 50 percent of the disputed sum (N900 billion) under assessment.
Multichoice insists the amount is “arbitrary.”
“No science to it and respondent (FIRS) contrived the numbers,” MultiChoice said of the N1.8 trillion tax claim.
“The reality of the appellant’s (MultiChoice) business is far from what the respondent fixes in its office,” the company told the tribunal at the resumed hearing.
“In respect of this dispute, N8 billion has been paid in the case pursuant to paragraph 15(7) of the FIRS Act. And N2bn in respect of VAT in another matter here before your honour,” Multichoice said.