MultiChoice group says its Nigerian subsidiary has reached a settlement with the Federal government and agreed to pay a total tax amount of $37.3 million.
The Federal Inland Revenue Service (FIRS) had in 2022 froze MultiChoice Nigeria’s accounts and served Notices of Assessment and Demand Notices on MultiChoice Group with a N1.8 trillion ($1.27 billion) tax claim for its Nigeria operation and a $342 million claim for value-added taxes.
FIRS added that the total tax amount of N35.4bn to be paid by MultiChoice Nigeria and MultiChoice Africa Holdings would be offset against the security deposits and good faith payments made to date.
The Africa’s biggest entertainment company which offers products and services, including DStv, GOtv, Showmax, M-Net, SuperSport, amongst others went to court to challenge the penalty imposed by the tax authority.
Meanwhile, both parties agreed to an out-of-court settlement of their outstanding tax disputes and sought a peaceful resolution of their issues.
The South Africa firm in a statement on Thursday said “In terms of the agreement, MultiChoice Nigeria and MultiChoice Africa shall pay a total tax amount of N35.4bn ($37.3m), to be offset against the security deposits and good faith payments made to date.”
