MultiChoice Settles Tax Dispute with Nigeria – $37 Million Payment Resolves Three-Year Disagreement

MultiChoice Settles Tax Dispute with Nigeria – $37 Million Payment Resolves Three-Year Disagreement

MultiChoice, the Pan-African broadcaster, has reached a resolution with Nigeria’s tax authorities, agreeing to pay $37 million to settle a longstanding tax dispute.

This payment stems from accusations of a ₦1.8 trillion ($4.4 billion) tax fraud levied against MultiChoice in June 2021, leading to a freeze on the company’s bank accounts.

Settlement Terms:

As part of the settlement agreement, MultiChoice Nigeria and MultiChoice Africa will collectively pay ₦35.4 billion (~$37.3 million).

This amount will be offset against security deposits and previous good faith payments made by the broadcasting company.

MultiChoice, while maintaining its innocence, has paid a total of $56 million to resolve the tax claim.

Company’s Stance and Legal Proceedings:

Despite making substantial payments, MultiChoice has consistently asserted its innocence in the tax dispute.

In August 2021, the company lodged an appeal challenging the ₦1.8 trillion tax bill with the Tax Appeal Tribunal.

The tribunal later ruled for MultiChoice to pay half the contested amount, prompting the company to make a $19 million deposit.

Resolution Process and Forensic Audit:

By March 2022, MultiChoice and the Federal Inland Revenue Services (FIRS) mutually agreed to seek an amicable resolution to the ongoing tax matters.

Subsequently, MultiChoice withdrew all existing lawsuits, allowing FIRS to conduct a forensic audit to accurately determine the company’s tax liability.

Conclusion:

The settlement of the tax dispute marks a significant development in MultiChoice’s relationship with Nigeria’s tax authorities.

Despite the financial implications, the company’s insistence on innocence and the agreed-upon forensic audit demonstrate a commitment to transparency and a resolution based on accurate assessments.

TDPel Media

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