Tax Fraud: DSTV Knocked Down As Brand Evades Tax Payment Since 1993, Worth N1.8T

The Chairman of Federal Inland Revenue Service (FIRS) Mohammad Nami has revealed that he has appointed as agents, deposit money banks where DSTV‘s MultiChoice Nigeria Limited (MCN) and MultiChoice Africa (MCA) maintain accounts to recover its taxes invasions.

Brandnewsday gathers that the FRSC boss made this known through a statement on Thursday morning that the  South African owned companies continued refusal to grant FIRS access to its servers for audit. Therefore, handing over to Nigerian banks where the DSTV maintain accounts as agents to recover N1.8 trillion outstanding taxes.

According to a report from the FIRS, DSTV, the parent company, which provides services to MCN has never paid Value Added Tax (VAT) since its inception.

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The agency grumbled that foreign companies never take Nigeria seriously when it comes to paying their taxes. Claiming they do to Nigeria what they dare not try in their countries of origin.

Tax Fraud: DSTV Knocked Down As FIRS Appoints Banks To Recover N1.8Trillion

“They (foreign companies) do with impunity in Nigeria what they dare not try in their countries of origin”.

“It was discovered that the companies persistently breached all agreements and undertakings with the Service, they would not promptly respond to correspondences, they lacked data integrity and are not transparent as they continually deny FIRS access to their records.

“Particularly, MCN has avoided giving the FIRS accurate information on the number of its subscribers and income. The companies are involved in the under-remittance of taxes which necessitated a critical review of the tax-compliance level of the company,” FIRS said.

“The group’s performance does not reflect in its tax obligations and compliance level in Nigeria.

“The level of non-compliance by Multi-Choice Africa (MCA), the parent Company of Multi-Choice Nigeria (MCN) is very alarming”.

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“There is no doubt that broadcasting, telecommunications and the cable-satellite industries have changed the face of communication in Nigeria.

“However, when it comes to tax compliance, some companies are found wanting”.

According to the FRSC boss, “Information currently at the disposal of FIRS has revealed a tax liability for relevant years of assessment for ₦1,822,923,909,313.94 (One trillion, eight hundred and twenty-two billion, nine hundred and twenty-three million, nine hundred and nine thousand, three hundred and thirteen naira, ninety-four kobo only) and $342,531,206 (Three hundred and forty-two million, five hundred and thirty-one thousand, two hundred and six dollars only).

“In this regard, the affected banks are required to sweep balances in each of the above-mentioned entities’ accounts and pay the same in full or part settlement of the companies’ respective tax debts until FULL recovery.

“This should be done before the execution of any transaction involving the companies or any of their subsidiaries.

FIRS requested the banks to inform it of any transactions before execution on the accounts, especially transfers of funds to any of their subsidiaries,” the statement added.

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