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Multichoice Agrees to Pay N35 Billion Tax Bill to FIRS

Multichoice Agrees to Pay N35 Billion Tax Bill to FIRS

Multichoice Group, the owner of DStv and GOtv, has agreed to pay N35.4 billion to the Federal Inland Revenue Service (FIRS) to settle its tax obligations.

In a statement to shareholders, Multichoice explained that the payment will be made to offset against security deposits. This settlement comes after disputes arose from tax assessments made in April 2021 on Multichoice Nigeria (MCN) and in June 2021 on Multichoice Africa Holdings BV (MAH).

The agreement reached between FIRS, MCN, and MAH is considered a final settlement of all tax matters in dispute. As per the agreement, Multichoice will pay a total tax amount of N35.4 billion, which will be deducted from the security deposits and good faith payments made to date.

Previously, in 2021, FIRS had issued tax bills totaling N1.82 trillion. MultiChoice contested these assessments and took the matter to the tax appeal tribunal (TAT) and the federal high court.

Additionally, Multichoice filed a court action challenging FIRS’s assessment of unpaid value-added tax (VAT) amounting to $342 million. After seven months of legal challenges, FIRS and Multichoice Nigeria reached an agreement to resolve the tax disputes amicably. As part of the resolution, Multichoice agreed to withdraw all pending lawsuits, while FIRS agreed to conduct a forensic examination of the company’s accounts.

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