Startrend International Magazine For Your Latest News And Entertainment Gists
ABUJA, NIGERIA – The House of Representatives has announced its intent to investigate the alleged non-payment of N1.8 trillion in taxes owed to the Federal Government by Multichoice group, the operator of DSTV and GoTV.
The decision came following the adoption of a motion presented by Saidu Abdullahi (APC-Niger) during the plenary session in Abuja on Wednesday, February 28, 2024.
Abdullahi highlighted that Multichoice, a prominent multinational corporation operating in Nigeria, has been accused of withholding tax revenues owed to the Federation, as evidenced by suppressed information uncovered from submissions made in their home country.
The motion revealed that the Federal Inland Revenue Service (FIRS) engaged a consultant in 2021 to conduct an audit of Multichoice Nigeria’s tax obligations, including MultiChoice Africa, for the period from 2011 to 2020.
This audit revealed a significant tax indebtedness totaling over N1.8 trillion, including $342 million in Value-added tax for MultiChoice Africa, which allegedly never paid any taxes since commencing operations in Nigeria.
Despite previous attempts by FIRS to recover the unpaid taxes through legal means, including court proceedings and settlement negotiations, no resolution has been reached.
The motion also expressed concerns about ongoing efforts to sell Multichoice Nigeria and its subsidiaries to foreign interests while the tax debt remains outstanding.
The House cautioned potential buyers of Multichoice Nigeria and its subsidiaries to be aware of the alleged tax indebtedness, which might not have been disclosed in official documents.
Also, the House mandated the Committee on Finance to conduct an urgent and thorough investigation into Multichoice’s non-remittance of tax revenues to the Federation, focusing particularly on the suppression of information discovered from their submissions in their home country.
The Committee is expected to report back to the House within four weeks.
