FIRS Accuses DSTV of N1.8trn Tax Debt

By Modupe Gbadeyanka

A popular pay-TV service provider, DSTV, which is owned by MultiChoice Nigeria, a subsidiary of MultiChoice Africa, has been accused of owing the federal government N1.8 trillion as outstanding taxes.

The Federal Inland Revenue Service (FIRS), through its Executive Chairman, Mr Mohammad Nami, alleged that the company has failed to adhere to the country’s tax laws.

In a statement on Thursday, he said the company has never paid Value Added Tax (VAT) to the Nigerian authorities since it commenced operations in the country.

The agency has now asked all financial institutions the company has bank accounts to ensure they recovery the alleged tax liabilities.

According to the tax agency, the cable television company has refused to allow its server to be audited, wondering foreign organisations always flout laws of Nigeria when “they dare not try [such] in their countries of origin.”

“It was discovered that the companies persistently breached all agreements and undertakings with the Service, they 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 companies are involved in the under-remittance of taxes which necessitated a critical review of the tax-compliance level of the company,” FIRS said

“The group’s performance does not reflect in its tax obligations and compliance level in Nigeria.

“The level of non-compliance by Multi-Choice Africa (MCA), the parent Company of Multi-Choice Nigeria (MCN) is very alarming.

“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 Federal Inland Revenue Service (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.

“Information currently at the disposal of FIRS has revealed a tax liability for relevant years of assessment for N1,822,923,909,313.94 and $342,531,206.

“In this regard, the affected banks are required to sweep balances in each of the above-mentioned entities’ accounts and pay the same in full or part settlement of the companies’ respective tax debts until full recovery.

“This should be done before the execution of any transaction involving the companies or any of their subsidiaries.

“FIRS requested the banks to inform it of any transactions before execution on the accounts, especially transfers of funds to any of their subsidiaries,” the statement said.