Tax Tribunal Strikes Out Multichoice’s Case Against The FIRS

The Tax Appeal Tribunal today struck out the appeal instituted by Multichoice Africa Holdings for want of diligent prosecution and ordered it to pay up the $342m tax assessment handed over to it by the Federal Inland Revenue Service.

Multichoice Africa Holdings, the parent company of Multichoice Nigeria and has engaged FIRS in a legal battle for months to challenge the assessment of the FIRS on its unpaid Value Added Tax (VAT) amounting to over $123.7 million. The tribunal while delivering its judgment on the appeal filed by the company upheld the preliminary objection of the FIRS against the appeal of Multichoice Africa Holdings B.V.

The Tribunal stated that the South African company did not comply with Order 3 Rule 6 of the Tax Appeal Tribunal (Procedure) Rules, 2021, which requires that an appellant is to deposit half of the assessed amount it is disputing before it can be heard on appeal. In addition, the appellant is required to file along with its appeal, an affidavit verifying the payment which the company also failed to comply with.

According to the Tribunal, the sum is to be paid as a security for the hearing of any tax appeal.

FIRS had earlier served a notice of unpaid VAT on Multichoice Africa Holdings B.V. but the company vehemently challenged the assessment and filed an appeal at the tribunal. With the ruling, the FIRS is expected to enforce the payment of the principal sum of $123.7 million being unpaid VAT by Multichoice Africa Holdings B.V. as well as interest and penalty at $218 million, totaling over $342 million.

Multichoice Africa Holdings, the parent company of Multichoice Nigeria, though, providing services to its Nigerian arm was said not to have paid Value Added Tax since inception.

Dolupo Balogun

Written by BoomRadioNG