A Tax Appeal Tribunal (TAT) sitting in Lagos has ordered Multichoice Nigeria Limited, owners of Cable television services, DSTV, to pay 50 per cent of N1.8 trillion tax back log to the Federal Inland Revenue Service (FIRS)Mr Abdullahi Ahmad, the Director, Communications and liaison Department of the FIRS, made this known in a statement in Abuja on Wednesday.Ahmad explained that FIRS discovered the backlog through a forensic audit as it showed that Multichoice Nigeria Limited had failed to pay to the government of Nigeria in past assessment years.
He said the five member TAT led by it’s chairman, Prof A.B. Ahmed, issued the order following an application to it by the counsel to FIRS. He stared that the Counsel made the application under Order XI of the TAT Procedure Rules 2010, which requires Multichoice or any other taxpayer who disputes their tax assessment, to make the statutory deposit required under paragraph 15(7) of the fifth schedule to the Federal Inland Revenue Service (Establishment) Act 2007 (FIRS Act).According to him, these relevant laws are conditions that must fulfilled before the prosecution of the appeal brought before TAT.
“In certain defined circumstances to which the Multichoice appeal fits, paragraph 15(7) of the fifth schedule to the FIRS (Establishment) Act 2007 requires persons or companies seeking to contest a tax assessment to pay all or a stipulated percentage of the tax assessed before they can be allowed to argue their appeal contesting the contesting the assessment at TAT.
“Multichoice Nigeria Limited filed the matter at the Lagos TAT following it’s dispute over FIRS’ issuance of Notices of Assessment and Demand Note in the sum of N1,822,923,909,313.94k on 7 April 2021.”In response, the FIRS Counsel asked TAT to issue an order requiring that Multichoice makes the statutory deposit of 50 per cent of the disputed sum.”The counsel also prayed TAT to direct Multichoice to produce before the tribunal the integrated Annual Report and Management Account Statements of Multichoice Group Ltd to Tax Years 2012 to 2020, among other prayers.
“After hearing arguments from both sides, TAT upheld the FIRS Act and directed Multichoice Nigeria Limited to deposit with the FIRS the amount prescribed by the law, which is an amount equal to the tax charges upon Multichoice in the preceding year of assessment.”Or one half of the tax charges by the assessment under appeal (whichever is lesser), plus a sum equal to 10 per cent of the said deposit as a condition precedent for further hearing of the Appeal.
“Thereafter, TAT adjourned the Appeal to September 23, 2021 for the continuation of the hearing, subject to compliance with the Tribunal’s order,” he said.
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