The Federal Inland Revenue Service (FIRS) made a collaboration with bank agents to freeze the account of Multichoice Africa (MCA) and Multichoice Nigeria (MCN) in a bid to retrieve the sum of ₦1.8 trillion from them over non-compliance of tax payment.
Abdullahi Ahmad, Director of Communications and Liaison Department of FIRS made this presentation in Abuja on Thursday. Multichoice owns the popular Satellite Television, DSTV, and its popular subscription-based platform is in Nigeria.
MCA and MCN constantly refused to grant FIRS access to their servers for audit and that was why the decision to works with banks as agents to freeze their accounts.
The service said it realized that the companies constantly violated all agreements and undertakings it had with the Service.
The Executive Chairman FIRS, Muhammad Nami, was quoted as saying:
“The companies would not promptly respond to correspondences, they lacked data integrity and are not transparent as they continually deny FIRS access to their records. Particularly, MCN has avoided giving the FIRS accurate information on the number of its subscribers and income. The group performance is not found in their level of tax obligation and cooperation
The FIRS stated that it is alarming that MultiChoice Nigeria (MCN) does not comply with tax payment and their company Multichoice Africa (MCA) has never paid tax since its inception.
“The issue with Tax collection in Nigeria, especially from foreign-based Companies conducting businesses in Nigeria and making massive profits is frustrating and infuriating to the FIRS. Regrettably, Companies come into Nigeria just to infringe on our tax laws by indulging in tax evasion. There is no doubt that broadcasting, telecommunications, and the cable-satellite industries have changed the face of communication in Nigeria. However, when it comes to tax compliance, some companies are found wanting. They do with impunity in Nigeria what they dare not try in their countries of origin,” he said.
Executive Chairman FIRS, Muhammad Nami
The chairman stated that Nigeria is a major contributor of 34 percent of total revenue for the Multi-Choice group, and the second to Nigeria in Kenya with 11 percent and Zambia taking third place with 10 percent.
