Multichoice Africa Holding, the parent company of Multichoice Nigeria, has lost an appeal at the Tax Appeal Tribunal and has been ordered to pay $342million to the Nigerian Government.
The company had engaged in a legal tussle with the Federal Inland Revenue Service(FIRS) over unpaid Value Added Tax(VAT) amounting to over $123.7 million.
The company though, providing services to its Nigerian arm was said not to have paid Value Added Tax since inception. The company had appealed the FIRS assessment at the Tax Appeal Tribunal on the ground of being too excessive.
The Tribunal confirmed that the South African company did not comply with Order 3 Rule 6 of the Tax Appeal Tribunal (Procedure) Rules, 2021, which states that an appellant is to deposit half of the assessed amount which is to be paid as a security for the hearing of any tax appeal before it can be heard on appeal.
Aside depositing the sum, the appellant is also required to file along with its appeal an affidavit to verify the payment which the company also failed to comply with.
With the Tribunal ruling, the FIRS is expected to enforce the payment of the principal sum of $123.7 million being unpaid VAT as well as interest and penalty of $218 million, bringing to total the sum of $342 million to be paid by the company to the Nigerian government.
