- Advertisement -spot_img
34.3 C
Lagos
HomeBusinessFIRS orders banks to freeze accounts of DSTV parent firms over N1.8...

FIRS orders banks to freeze accounts of DSTV parent firms over N1.8 trln tax debt

- Advertisement -spot_img

The Federal Inland Revenue Services (FIRS) said it has appointed some banks to help it collect all outstanding tx revenue totalling N1.8 trillion from accounts of Messrs MultiChoice Nigeria Limited (MCN) And MultiChoice Africa (MCA).

In a statement issued by the Executive Chairman, Muhammad Nami, said the service has also ordered that the account of the cable TV firms be frozen by their respective bankers.

FIRS said its decision to appoint the banks as agents and to freeze the accounts of the company was as a result of the group’s continued refusal to grant FIRS access to its servers for audit.

Nami accused the companies of persistently breached all agreements and undertakings with the Service, “they would not promptly respond to correspondences, they lacked data integrity and are not transparent as they continually deny FIRS access to their records.

“Particularly, MCN has avoided giving the FIRS accurate information on the number of its subscribers and income. The companies are involved in the under-remittance of taxes which necessitated a critical review of the tax-compliance level of the company.”

FIRS stated that the group’s performance does not reflect in its tax obligations and compliance level in the country.

According to the country’s tax collecting agency, the level of non-compliance by Multi-Choice Africa (MCA), the parent Company of Multi-Choice Nigeria (MCN) is very alarming.

It said the parent company, which provides services to MCN has never paid Value Added Tax (VAT) since its inception in the country.

READ ALSO: Nigeria losing 3,000 MW of electricity generation to inefficiency

“The issue with Tax collection in Nigeria, especially from foreign-based Companies conducting businesses in Nigeria and making massive profits is frustrating and infuriating to the Federal Inland Revenue Service (FIRS).

“Regrettably, Companies come into Nigeria just to infringe on our tax laws by indulging in tax evasion.

“There is no doubt that broadcasting, telecommunications and the cable-satellite industries have changed the face of communication in Nigeria.

“However, when it comes to tax compliance, some companies are found wanting. They do with impunity in Nigeria what they dare not try in their countries of origin,” the statement from the FIRS chairman stated.

Nigeria, he said contributes 34 percent of total revenue for the Multi-Choice group, followed by Kenya with 11 percent and Zambia placed third with 10 percent. The rest of Africa where they have presence accounts for 45 percent of the group’s total revenue.

“Information currently at the disposal of FIRS has revealed a tax liability for relevant years of assessment for N1,822,923,909,313.94 (One trillion, eight hundred and twenty-two billion, nine hundred and twenty-three million, nine hundred and nine thousand, three hundred and thirteen naira, ninety-four kobo only) and $342,531,206 (Three hundred and forty-two million, five hundred and thirty-one thousand, two hundred and six dollars only).

“Under FIRS powers in Section 49 of the Companies Income Tax Act Cap C21 LFN 2004 as amended, Section 41 of the Value Added Tax Act Cap V1 LFN 2004 as amended and Section 31 of the FIRS (Establishment) Act No. 13 of 2007, all bankers to MCA & MCN in Nigeria were therefore appointed as Collecting Agents for the full recovery of the aforesaid tax debt.

“In this regard, the affected banks are required to sweep balances in each of the above-mentioned entities’ accounts and pay the same in full or part settlement of the companies’ respective tax debts until FULL recovery.

“This should be done before the execution of any transaction involving the companies or any of their subsidiaries. It is further requested that the Federal Inland Revenue Service be informed of any transactions before EXECUTION on the account, especially transfers of funds to any of their subsidiaries,” Nami stated.

Join Our Mailing List!

* indicates required
- Advertisement -spot_img
- Advertisement -spot_img
Must Read
Related News
- Advertisement -spot_img