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Tax Evasion: Tribunal Orders DsTV To Pay 50% Backlog

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Tax Evasion - Tribunal Orders DsTV To Pay 50% Backlog

Tax Appeal Tribunal (TAT) sitting in Lagos on Tuesday ordered Multichoice Nigeria Limited, owners of DSTV, to pay 50 per cent of N1.8 trillion which the Federal Inland Revenue Service (FIRS) said it was owing.

The FIRS determined the amount in taxes through a forensic audit that Multichoice Nigeria Limited had failed to pay to the government of Nigeria in past assessment years.

The five-member TAT led by its chairman, professor A.B. Ahmed, issued the order following an application to it by the Counsel to FIRS, the tax watchdog said in a statement that was issued by its spokesman, Dr Abdullahi Ahmad.

According to Ahmad, the Counsel made the application under Order XI of the TAT procedure rules 2010 which requires Multichoice, or any other taxpayer who disputes their tax assessments, to make the statutory deposit required under paragraph 15(7) of the fifth schedule to the FIRS Act 2007 as a condition that must be fulfilled before the prosecution of the appeal brought before TAT.

Multichoice Nigeria Limited filed the matter at the Lagos TAT following its dispute over FIRS’ issuance of notices of assessment and Demand Note in the sum of N1, 822, 923,909,313.94 trillion on 7 April , 2021.

The amount constitutes what the FIRS calculated as due in taxation to the Federal Government of Nigeria from Multichoice after an investigation over several months to determine the extent to which Multichoice has been evading taxes in Nigeria.

At Tuesday’s hearing of the matter in appeal, Multichoice Nigeria Limited amended its Notice of Appeal and thereafter sought through its counsel, Bidemi Olumide of AO2 Law Firm for an adjournment of the proceedings to enable it to respond to the FIRS’ formal application for Accelerated hearing of the Appeal and prayer before the TAT directing Multichoice to produce before the Tribunal the integrated Annual report and Management Account Statements of Multichoice Group Ltd for Tax Years 2012 to 2020, among other prayers.