MultiChoice agrees to a $37 million tax settlement with Nigerian tax authorities

MultiChoice, the Pan-African broadcaster, has settled a three-year tax dispute with Nigeria’s Federal Inland Revenue Services (FIRS) by paying ₦35 billion (~$37 million). This dispute started in 2021 when FIRS charged MultiChoice with a ₦1.8 trillion ($4.4 billion) tax fraud, leading to a freeze on the company’s bank accounts.

Despite allegedly fraudulent tax charges and subsequent payments, MultiChoice consistently defended its innocence. After a Tax Appeal Tribunal demanded pay for half of the contested ₦1.8 trillion tax bill in August 2021, MultiChoice made a $19 million deposit.

According to a recent statement from MultiChoice to its shareholders, an agreement has resulted in MultiChoice Nigeria and MultiChoice Africa paying a collective tax amount of ₦35.4 billion (~$37.3 million). This has been offset against earlier security deposits and payments, leading to a total settlement of $56 million.

By March 2022, all pending tax matters were amicably resolved between MultiChoice and FIRS. Consequently, MultiChoice withdrew all existing lawsuits. Simultaneously, FIRS conducted a forensic audit to accurately determine the company’s tax liability.