In a recent development, MultiChoice Group, Africa’s largest pay TV company, has announced that its Nigerian subsidiary has come to an agreement with the federal government through the Federal Inland Revenue Service (FIRS) to settle outstanding tax claims.
The settlement entails MultiChoice Nigeria paying a total tax amount of approximately $37.3 million.
The journey to this resolution began when FIRS froze MultiChoice Nigeria’s accounts in 2022 and issued a staggering N1.8 trillion ($1.27 billion) tax claim for its operations in Nigeria, along with an additional $342 million claim for value-added taxes.
In response to these claims, MultiChoice Group released a statement indicating that the agreed-upon tax amount of N35.4 billion would be paid by MultiChoice Nigeria and MultiChoice Africa Holdings, offsetting against previous security deposits and good faith payments.
MultiChoice, renowned for its satellite television platform, DSTV, holds a significant position in Nigeria’s subscription-based TV market.
The settlement marks the end of a protracted dispute between MultiChoice and FIRS, characterised by legal battles and allegations of non-compliance. FIRS accused MultiChoice of persistent breaches of agreements, lack of transparency, and refusal to grant access to its financial records for audit purposes.
