x

FIRS accuses MULTICHOICE of tax evasion

The Federal Inland Revenue Service, FIRS, has appointed some commercial banks as agents to recover the sum of N1.8 trillion from accounts of Messrs MultiChoice Nigeria Limited (MCN) And MultiChoice Africa (MCA) on suspicion of tax evasion

This was contained in a statement signed by the Executive Chairman, Muhammad Nami and made available to the press.

The statement confirmed that the decision to appoint the banks as agents and to freeze the accounts was as a result of the group’s continued refusal to grant FIRS access to its servers for audit. It was discovered that the companies 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.

The statement added that the group’s performance does not reflect in its tax obligations and compliance level in Nigeria. The level of non-compliance by Multi-Choice Africa (MCA), the parent Company of Multi-Choice Nigeria (MCN) is very alarming. The parent company, which provides services to MCN has never paid Value Added Tax (VAT) since its inception.

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 further confirmed that Nigeria contributes 34% of total revenue for the Multi-Choice group. The next to Nigeria from intelligence gathering is Kenya with 11%, and Zambia is in 3rd place with 10%. The rest of Africa where they have presence accounts for 45% of the group’s total revenue.

Information currently at the disposal of FIRS has revealed a tax liability for relevant years of assessment for ₦1,822,923,909,313.94 (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.

The Executive Chairman, FIRS concluded that it is important that Nigeria puts a stop to all tax frauds that have been going on for too long. All Companies must be held accountable and made to pay their fair share of relevant taxes including back duty taxes owed, especially VAT for which they are ordinarily agents of collection.

              

Hot this week

Challenges of Street Begging: Expert Advocates Capacity-Building Training for Children

By Achadu Gabriel, Kaduna Development expert and philanthropist, Mr. Mohammad...

ECOWAS Peace Fund, UCARE Nigeria Render Humanitarian Services to Over 2,000 IDPs in Benue

By Isaac Kertyo, Makurdi The ECOWAS Peace Fund, in partnership...

Bandits: Police Rescue 3 Minors, Arrest Suspects in Kaduna

By Achadu Gabriel, Kaduna The Kaduna State Police Command has...

SWAN President, Others Arrive Asaba for 9th National Youth Games Kick-Off

By Anne Azuka The President of the Sports Writers Association...

Sokoto Trains 448 Principals, Quality Assurance Officers to Boost Education Standards

By Muhammad Ibrahim, Sokoto The Sokoto State Government has organized...

2027: Middle Belt Group Protests PDP Zoning, Demands Presidential Ticket

By Israel Adamu, Jos The Cultural Middle Belt Renaissance Forum...

Plateau Youth Activist Hoomen Congratulates Dr. Cyril Tsenyil on NCDC Appointment

By Israel Adamu, Jos Plateau youth activist, Comrade Pius Hoomen,...

Ododo Orders Appointees to Return to LGAs for Grassroots Mobilisation on CVR

By Noah Ocheni, Lokoja Kogi State Governor, Alhaji Ahmed Usman...

Chinese film on Nanjing Massacre resonates with Nigerian audience Source:...

Oborevwori, Senator Nwoko Hail Igbo Socio-Cultural Group for Tackling Identity Crisis

By Anne Azuka The Igbo Unification Movement, in collaboration with...

Tinubu Declares 9th National Youth Games Open in Delta

By Anne Azuka The 9th National Youth Games kicked off...

PAAU Gets NUC Approval for MBBS Program

By Noah Ocheni, Lokoja The Faculty of Medicine at Prince...
spot_img

Related Articles

Popular Categories

spot_imgspot_img