Reps to Investigate Non-Remittance of N1.8 Trillion Tax by Multichoice
The House of Representatives has directed its Committee on Finance to conduct a thorough investigation into the failure of Multichoice to remit tax revenues totalling N1.8 trillion ($342 million) to the federal government. The decision came after Sa’idu Abdullahi presented a motion during Wednesday’s plenary session.
Abdullahi highlighted the need for the investigation due to the suppression of information uncovered from the company’s submissions in its home country, South Africa. Multichoice, a prominent multinational corporation in Nigeria, stands accused of withholding tax revenues owed to the federal government.
Abdullahi emphasized the significant challenges facing the Nigerian economy, with dwindling revenue threatening the country’s overall fiscal stability and development. He revealed that the Federal Inland Revenue Service (FIRS) engaged a consultant in 2021 to audit Multichoice’s tax obligations. The audit revealed substantial tax arrears dating back to 2011.
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Despite previous attempts by FIRS to recover unpaid taxes through legal means, including court proceedings and out-of-court settlements, the desired results have not been achieved. The investigation uncovered outstanding tax liabilities amounting to over N1.8 trillion for Multichoice Nigeria and $342 million in Value-added tax for Multichoice Africa.
Abdullahi expressed concern over plans to sell Multichoice Nigeria and other subsidiaries to foreign interests while the tax debts remain unresolved. Urgent action is necessary to recover these outstanding tax revenues to prevent further economic loss
The House adopted the motion and cautioned potential buyers of Multichoice subsidiaries operating in Nigeria to be aware of the alleged outstanding tax liabilities
