Tax Evasion: tribunal orders DSTV to pay 50% backlog

August 25, 2021
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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 in tax returns.

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.

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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.

The FIRS Counsel asked TAT to issue an order requiring that Multichoice makes the statutory deposit of 50% of the disputed sum.

After hearing arguments from both sides, TAT upheld the FIRS Act and directed Multichoice Nigeria Limited to deposit with the FIRS the amount prescribed by the law, which is an amount equal to the tax charged upon Multichoice in the preceding year of assessment or one half of the tax charged by the assessment under appeal (whichever is lesser), plus a sum equal to 10% of the said deposit as a condition precedent for further hearing of the Appeal.

Thereafter, TAT adjourned the Appeal to 23 September 2021 for the continuation of the hearing, subject to compliance with the Tribunal’s order.

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