Nigeria’s revenue service on Thursday said that it had instructed banks to freeze the accounts of media entertainment firm MultiChoice Africa and its Nigerian subsidiary for breaching agreements and denying access to their records for auditing, a Reuters report stated.
Nigeria’s Federal Inland Revenue Service (FIRS) said it had appointed commercial banks and agents to recover 1.8 trillion naira ($4.4 billion) in outstanding tax obligations from MultiChoice Africa and MultiChoice Nigeria.
“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,” FIRS said.
“The companies are involved in the under-remittance of taxes which necessitated a critical review of the tax-compliance level of the company.”
MultiChoice is the latest South African firm to face a huge tax bill in Nigeria after MTN Group’s Nigeria unit was in 2018 ordered to pay $2 billion in taxes relating to the import of equipment and payments to foreign suppliers from 2007 to 2017. The tax demand was eventually dropped.
MultiChoice Group shares were down 3.73% at 0923 GMT following FIRS’ statement.
MultiChoice Group in South Africa and its Nigerian subsidiary said they would issue a statement soon.