- House of Representatives directs Finance Committee to investigate Multichoice’s failure to remit N1.8 trillion tax revenues
- Multichoice accused of withholding tax revenues; FIRS audit reveals substantial arrears dating back to 2011, totaling N1.8 trillion
Abdullahi highlighted the need for the investigation due to the suppression of information uncovered from the company’s submissions in its home country, South Africa. Multichoice, a prominent multinational corporation in Nigeria, stands accused of withholding tax revenues owed to the federal government.
Abdullahi emphasized the significant challenges facing the Nigerian economy, with dwindling revenue threatening the country’s overall fiscal stability and development. He revealed that the Federal Inland Revenue Service (FIRS) engaged a consultant in 2021 to audit Multichoice’s tax obligations. The audit revealed substantial tax arrears dating back to 2011.
Despite previous attempts by FIRS to recover unpaid taxes through legal means, including court proceedings and out-of-court settlements, the desired results have not been achieved. The investigation uncovered outstanding tax liabilities amounting to over N1.8 trillion for Multichoice Nigeria and $342 million in Value-added tax for Multichoice Africa.
Abdullahi expressed concern over plans to sell Multichoice Nigeria and other subsidiaries to foreign interests while the tax debts remain unresolved. Urgent action is necessary to recover these outstanding tax revenues to prevent further economic loss.
The House adopted the motion and cautioned potential buyers of Multichoice subsidiaries operating in Nigeria to be aware of the alleged outstanding tax liabilities.