Multichoice denies Nigerian government’s N1.8trn tax fraud allegations, says business continues as usual

DSTV parent company, MultiChoice has denied the Federal Inland Revenue Service’s (FIRS) N1.8trn tax fraud allegations.

According to a statement issued by the company, it claims that it has not received any formal notification from the commission. It added that it only became aware of the situation through news media reports.

“We have not received formal notification of this matter, however, shareholders are advised that the Group is aware of reports in the media regarding an ongoing tax matter with the Nigerian Federal Inland Revenue Service,”

Extract from Multichioce statement

Recall that earlier in the week, FIRS has directed commercial banks to freeze and recover over N1.8 trillion in taxes from MultiChoice Nigeria Limited (MCN) And MultiChoice Africa (MCA).

According to the commission, MultiChoice the owners of popular satellite Tv, DSTv, has persistently breached all agreements and undertakings with the Service.

It added that performance did not reflect in their tax obligations and compliance level in the country and upon request, Multichoice refused to grant FIRS access to their servers for audit.

In response, Multichoice says the commission’s allegations are unfounded. It added that it was fully engaged in a transparent process with the FIRS and believed that the matter would be amicably resolved.

“The matter is apparently based on unfounded allegations that MultiChoice Nigeria has not fully disclosed all existing subscribers to authorities,” the South African company said.

It finalised by saying that its operations in Nigeria will be continuing as usual.

In summary

The FIRS allegations against MultiChoice has got investors worried. Following the commission’s report, the company’s share prices fell by 6.5%.

MultiChoice DStv currently has between 1.5 to 2 million Nigerian subscribers. Multichoice reports that it has contributed 700-billion Naira ($1.7-billion) to the Nigerian economy.

However, if the government’s tussle with South African telecom giant MTN is anything to go by, it is possible that an amicable resolution can be reached.