FIRS moves to freeze Multichoice bank accounts over N1.8trillion tax obligations

*Nigeria’s Federal Inland Revenue Service has said the Multichoice companies persistently breached all agreements and the groups’ performance did not reflect in their tax obligations and compliance level in the country

Isola Moses | ConsumerConnect

On an alleged breach of all agreements, and several other infractions bordering on failure to reflect the group’s tax obligations and compliance level, the Federal Inland Revenue Service (FIRS) has directed commercial banks in Nigeria to freeze the accounts of Multichoice Nigeria Limited and Multichoice Africa.

ConsumerConnect reports the tax regulatory authority said the move was an attempt to recover about N1.8 trillion outstanding tax liabilities that the group owes the country.

Abdullahi Ahmad, Spokesman of FIRS, in a statement Thursday, July 8, 2021, said the tax regulator said it discovered that the Multichoice companies persistently breached all agreements, while the groups’ performance did not reflect in their tax obligations and compliance level in the country.

FIRS maintained that Multichoice Africa, which provides services to its Nigerian subsidiary has never paid Value-Added Tax (VAT) to the Nigerian Government since its inception.

However, the country contributes 34 percent of total revenue for the Multichoice Group, according to the tax authority.

The statement also noted that the decision to appoint the Nigerian commercial banks as agents to freeze the accounts was due to the Multichoice’s continued refusal to grant FIRS access to their servers for proper audit.

The Revenue Service said it discovered that the companies persistently breached all agreements and undertakings with the FIRS in Nigeria.

ConsumerConnect reports Multichoice is the owner of the satellite television channels, DSTV and GoTV, which are popular subscription-based platforms in the country.