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FIRS, Multichoice agree to settle tax dispute

THE Federal Inland Revenue Service and MultiChoice Nigeria have agreed to settle their pending tax disputes outside of court.

Both parties have agreed to an amicable resolution of their issues, which according to a statement led to a series of lawsuits,

The statement read in part, “By the broad terms of the agreement, MultiChoice shall withdraw all pending lawsuits towards an amicable resolution of the dispute.

“Also, as part of the agreement, the FIRS commenced a forensic systems audit of MultiChoice accounts on Tuesday, 8 March, 2022 to determine the tax liability of the Company.”

Recall that in April 2021, the FIRS issued Notices of Assessment and Demand Notices in the sum of N1.8tn on MultiChoice.

MultiChoice, which disputed the assessments, approached the Tax Appeal Tribunal leading to a series of cases at both the TAT and the Federal High Court.

In August, the FIRS announced that a TAT court sitting in Lagos had ordered MultiChoice to pay 50 per cent of the N1.8tn which it had determined to be the amount the company hasn’t made in tax payments.

MultiChoice disputed the ruling, claiming that the TAT court had not ordered it to pay the FIRS’s claimed 50 percent.

Later, the company would reject the TAT court’s decision dismissing its appeal against the FIRS’s assessment of $342 million in Value Added Tax.

However, MultiChoice and FIRS have stated that the dispute will be resolved soon as a result of the agreement and the resumption of the Forensic Systems Audit.

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