MultiChoice Nigeria has responded to a ruling issued by the Tax Appeal Tribunal (TAT) following its appeal over the contested N1.8 trillion tax backlog attributed to the company by the Federal Inland Revenue Service (FIRS).
Abdullahi Ahmad, the Director, Communications and Liaison Department of the FIRS, had in a statement on Wednesday said the tribunal ordered Multichoice Nigeria to deposit 50 per cent of the disputed N1.8 trillion tax with the FIRS.
But MultiChoice said the directive issued by the tribunal does not compel it to make payment of 50 per cent of N1.8 trillion, being half of the disputed tax assessment, as claimed by the FIRS.
The statement read: “MultiChoice Nigeria has noted today’s media statement on the Tax Appeal Tribunal appeal hearing held on August 24, 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 per cent. The lesser amount is the tax paid by MultiChoice Nigeria in the previous assessed year, which is substantially less than the disputed assessment.”
The company added that it “is a law-abiding corporate citizen and continues to engage constructively with FIRS in an attempt to resolve this matter”.