The company, which made its position known in a statement
yesterday, stated it will appeal the ruling at the Federal High Court, adding
that the TAT ruling was based on technicality rather than the merits of the
case.
For that reason, MAH respectfully disagreed with the ruling,
which was based on a technicality rather than the merits of the case.
Therefore, we will be lodging an appeal at the Federal High Court against the
ruling.
“This tax appeal is a separate and distinct matter from the
appeal launched by MultiChoice Nigeria (MCN), in which the TAT found in MCN’s
favour last week, allowing it to proceed with that appeal,” the company stated.
The multinational pay-TV provider had lost the legal battle
over a disputed $342million tax bill on Tuesday.
MultiChoice had opposed claims by then FIRS, notably over
its tax indebtedness to the Federal Government. However, its appeal was struck
out for lack of diligent prosecution.
Delivering judgment on the appeal filed by MultiChoice, the
tribunal upheld the preliminary objection of the FIRS against the appeal of
Multichoice Africa Holdings B.V. Further, the TAT ruled that the firm did not
comply with existing tax laws; specifically, Order 3 Rule 6 of the Tax Appeal
Tribunal (Procedure) Rules, 2021; which stipulates that an appellant is to
deposit half of the assessed amount it is disputing before it can be heard on
appeal.
In addition to depositing the sum, the appellant is expected
to file along with its appeal an affidavit verifying the payment. The Tribunal
had stated that MultiChoice equally failed to comply with this procedure.
Equally important, the tribunal held that the sum is to be paid as a security
for the hearing of any tax appeal.
It cited the rule which states: “For an appeal against the
tax authority, the aggrieved person will pay 50 per cent of the disputed amount
into designated account by the Tribunal before hearing as security for
prosecuting the appeal.”
Earlier on June 16, 2021, the FIRS had served a notice of
unpaid VAT on Multichoice Africa Holdings B.V. The FIRS claimed that the
company had not remitted VAT since inception, a claim it had disputed.
Consequently, the company had challenged the assessment and filed an appeal at
the tribunal. But in filing the appeal, MultiChoice failed to comply with
provisions of tax laws by failing to make the required deposit as stipulated by
the Tribunal Rules.
With the ruling, the FIRS is expected to enforce the payment
of the principal sum of $123.7 million; being unpaid VAT by Multichoice Africa
Holdings B.V as well as interest and penalty at $218 million, amounting to over
$342 million.
MultiChoice, operators of DSTV, GOTV and ShowMax, is
Africa’s biggest pay-TV provider.
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