Multichoice says it has complied with Nigerian tax laws and will prove that to the Federal Inland Revenue Service, which accused the South African digital television company of tax fraud.
The company said this in a statement Thursday after the FIRS said the DSTV owner had dodged tax and had an outstanding of N1.8 trillion.
The tax body said it has engaged commercial banks to freeze and recover the amount from the bank accounts of MultiChoice Nigeria Limited and MultiChoice Africa.
The Executive Chairman of FIRS, Muhammad Nami, said Multichoice and its unit in Nigeria consistently failed to promptly respond to correspondences, lack data integrity and continually deny FIRS access to their records.
“Particularly, MCN has avoided giving the FIRS accurate information on the number of its subscribers and income,” he said.
“The companies are involved in the under-remittance of taxes which necessitated a critical review of the tax-compliance level of the company.
”It is important that Nigeria puts a stop to all tax frauds that had been going on for too long and all companies must be held accountable and made to pay their fair share of relevant taxes including back duty taxes owed especially VAT,” he said.
In a short statement Thursday, Multichoice said the company had complied with the tax laws of Nigeria. He said the company had not received any notification from the tax office.
“We have read the media reports and the statements made by the Federal Inland Revenue Service (FIRS),” the statement said.
“MultiChoice Nigeria has not received any notification from FIRS. MultiChoice Nigeria respects and is comfortable that it complies with the tax laws of Nigeria.
“We have been and are currently in discussion with FIRS regarding their concerns and believe that we will be able to resolve the matter amicably.”
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