Rédaction Africa Links 24 with Ibrahim Ramalan
Published on 2024-02-28 16:57:01
The House of Representatives has initiated a probe into the alleged N1.8 trillion tax debt owed by Multichoice Group, the operator of DSTV and GoTV, to the Federal Government. This resolution was passed following a motion by Saidu Abdullahi (APC-Niger) during plenary in Abuja. It was noted that Multichoice, a prominent multinational corporation in Nigeria, has been accused of failing to remit tax revenues owed to the Federation.
The motion highlighted that evidence of this non-remittance was found through information uncovered in their home country. The Federal Inland Revenue Service (FIRS) had engaged a consultant in 2021 to conduct an audit of Multichoice Nigeria’s tax obligations, including MultiChoice Africa, to determine their tax debts to the country. This led to a back audit and investigation by the FIRS from 2011 to 2020.
Despite previous attempts by FIRS to recover unpaid taxes through legal means, including court proceedings and out-of-court settlements, there were no successful outcomes. The systems audit and investigation revealed a significant debt of over N1.8 trillion in back taxes for MultiChoice Nigeria, including $342 million in Value-added tax for MultiChoice Africa, which had never paid any taxes since starting operations in Nigeria.
The motion also raised concerns about ongoing plans to sell Multichoice Nigeria and other subsidiaries to foreign interests while the tax debt remains outstanding. The House emphasized the urgency of recovering these tax revenues from the Multichoice Group to prevent Nigeria from losing a substantial source of revenue that could stimulate the economy.
Following the adoption of the motion, the House cautioned potential buyers of Multichoice Nigeria, Multichoice Africa, or any other subsidiaries of the Multichoice group operating in Nigeria to be aware of the alleged outstanding tax debt. The Committee on Finance was tasked with initiating an urgent and comprehensive investigation into the non-remittance of tax revenues by Multichoice to the Federation. The committee was required to focus on uncovering any suppression of information discovered in their submissions in their home country and report back to the House within four weeks.
In conclusion, the House of Representatives is taking steps to address the alleged tax debt owed by Multichoice Group to the Federal Government. By investigating the non-remittance of tax revenues and advocating for the recovery of these debts, the House aims to protect Nigeria’s financial interests and ensure that multinational corporations fulfill their tax obligations to the country.
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