Fifty per cent of the backlog is N900 billion.
The five-member TAT led by its Chairman, Prof. A.B. Ahmed,
issued the order following an application to it by the counsel to FIRS.
The FIRS Counsel made the application under Order XI of the
TAT Procedure Rules 2010 which enables a party to make an application at any
stage of the proceedings.
Counsel for FIRS drew the attention of the Tribunal to
Paragraph 15(7) of the Fifth Schedule to the Federal Inland Revenue Service
(Establishment) Act 2007 and urge the tribunal to direct Multichoice to deposit
with the FIRS 50 per cent of the amount of the assessment under appeal as
security and a condition that must be fulfilled before the prosecution of the
appeal brought before the tribunal.
The details of the development was contained in a statement
issued Wednesday by Director, Communications and Liaison Department, FIRS, Dr.
Abdullahi Ismaila Ahmad.
In certain defined circumstances to which the Multichoice
appeal fits, Paragraph 15(7) of the Fifth Schedule to the Federal Inland
Revenue Service (Establishment) Act 2007 (FIRS Act) requires persons or
companies seeking to contest a tax assessment to pay all or a stipulated
percentage of the tax assessed before they can be allowed to argue their appeal
contesting the assessment at TAT, the statement added.
Multichoice had filed the matter at the Lagos TAT following
its dispute over FIRS’ issuance of Notices of Assessment and Demand Note in the
sum of N1.82 trillion on 7 April 7, 2021.
The amount constitutes what the FIRS calculated as due in
taxation to the federal government from the company after an investigation over
several months to determine the extent to which Multichoice had been evading
taxes in Nigeria.
According to the statement, at the Tuesday’s hearing of the
matter in Appeal No: TAT/LZ/CIT/062/2021 19/08/2021 (Multichoice Nigeria
Limited v. Federal Inland Revenue Service), Multichoice had amended its Notice
of Appeal and thereafter sought through its counsel, Bidemi Olumide of AO2 Law
Firm for an adjournment of the proceedings to enable it to respond to the FIRS’
formal application for accelerated hearing of the appeal and prayer before the
TAT directing Multichoice to produce before the tribunal the integrated annual
report and Management Account Statements of Multichoice Group Ltd for Tax Years
2012 to 2020., among other prayers.
In response, however, the FIRS counsel asked TAT to issue an
order requiring that Multichoice makes the statutory deposit of 50 per cent of
the disputed sum.
After hearing arguments from both sides, TAT upheld the FIRS
submission and directed Multichoice to deposit with the FIRS an amount equals
50 percent of the Assessment under the Appeal plus a sum equal to 10 per cent
of the said deposit as a condition precedent for further hearing of the appeal.
Thereafter, TAT adjourned the appeal to September 23, 2021
for report of compliance with its order and continuation of the hearing,
subject to compliance with the tribunal’s order.
Thereafter, TAT adjourned the appeal to September 23, 2021
for report of compliance with its order and continuation of the hearing,
subject to compliance with the tribunal’s order.
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