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Thursday, May 26, 2022

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FIRS, Multichoice agree on out of court settlement of N1.8 trln tax dispute

The Federal Inland Revenue Service (FIRS) and MultiChoice Nigeria have announced an agreement to settle dispute over tax with the cable television firm agreed to withdraw all pending cases against the tax agency.

The dispute resolution agreement between the two parties, which was announced on Wednesday also showed that FIRS will conduct a forensic systems audit of the company’s accounts.

“By the broad terms of the agreement, MultiChoice shall withdraw all pending lawsuits towards an amicable resolution of the dispute.

“Also, as part of the agreement, the FIRS commenced a Forensic Systems Audit of MultiChoice accounts on Tuesday, 8 March 2022 to determine the tax liability of the company,” both parties said in a joint press statement.

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According to both parties, the agreement and the resumption of the Forensic Systems Audit means that the dispute will be resolved very soon.

In April 2021, the FIRS issued Notices of Assessment and Demand Notices in the sum of N1.82 trillion on the Company.

MultiChoice, which disputed the assessments, approached the Tax Appeal Tribunal (TAT). This development led to a series of cases at both the TAT and the Federal High Court.

Also, in October last year, MultiChoice Nigeria Limited paid N8 billion in two tranches to FIRS account as required by the law guiding disputes over tax evasion.

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