The Tax Appeal Tribunal (TAT) sitting in Lagos has ordered Multichoice Nigeria Limited, owners of DSTV, to pay 50 per cent of N1.8 trillion which the Federal Inland Revenue Service (FIRS) has determined through a forensic audit to be the amount in taxes that it had evaded to the Government of Nigeria in past assessment years.
The five-member TAT led by its Chairman, Professor A.B. Ahmed, issued the order following an application to it by the Counsel to FIRS.
The Counsel to FIRS made the application under Order XI of the Tax Appeal Tribunal Procedure Rules 2010 which enables a party to make an application at any stage of the proceedings. Counsel for FIRS drew the attention of the Tribunal to Paragraph 15(7) of the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act 2007 and urge the Tribunal to direct Multichoice Nigeria Limited to deposit with the FIRS 50 percent of the amount of the Assessment under Appeal as security and a condition that must be fulfilled before the prosecution of the Appeal brought before TAT.
Multichoice Nigeria Limited had filed the matter at the Lagos TAT following its dispute over FIRS’ issuance of Notices of Assessment and Demand in the sum of N1, 822, 923,909,313.94k on April 7, 2021. The amount constitutes what the FIRS calculated as due in taxation to the Federal Government of Nigeria from Multichoice after an investigation over several months to determine the extent to which Multichoice has been evading taxes in Nigeria.
At the Tuesday’s hearing of the matter, while Multichoice Nigeria Limited amended its Notice of Appeal and thereafter sought through its counsel, Bidemi Olumide for an adjournment of the proceedings to enable it to respond to the FIRS’ formal application FIRS sought the Tribunal to issue an order requiring that Multichoice makes the statutory deposit of 50% of the disputed sum.
After hearing arguments from both sides, TAT upheld the FIRS submission and directed Multichoice Nigeria Limited to deposit with the FIRS an amount equals 50 percent of the Assessment under the Appeal plus a sum equal to 10% of the said deposit as a condition precedent for further Hearing of the Appeal.
The Tribunal thereafter adjourned the Appeal to 23 September 2021 for report of compliance with its Order and continuation of the hearing, subject to compliance with the Tribunal’s order.