Tribunal Fixes Date To Rule On Tax Dispute
The Lagos Zone of the Tax Appeal Tribunal (TAT) hearing the N1.8 trillion tax dispute between the Federal Inland Revenue Service (FIRS) and MultiChoice Nigeria has fixed October 20, 2021, to rule on the matter.
The tribunal chairman, Prof. A.B. Ahmad, made the announcement, Thursday, at the resumed hearing.
t it ordered MultiChoice to make on August 24, before the continuation of its appeal.
The FIRS argued that Paragraph 15(7) of the Fifth Schedule to the FIRS (Establishment) Act 2007 compels a taxpayer disputing its assessment to make a statutory payment of 50 per cent of the disputed sum before the tribunal could prosecute an appeal brought before it. The agency stated that in the absence of a proof of deposit, it should discontinue the hearing of the appeal and enter judgment against MultiChoice.
MultiChoice, however, stated that it has complied, as the referenced section of the FIRS Act does not compel it to pay N900 billion but an amount equal to its tax in the preceding year of assessment or one half of the disputed tax assessment under appeal, whichever is the lesser amount plus 10 per cent.
MultiChoice stated that in fulfilment of the condition and demonstration of good faith, it deposited N10 billion with the FIRS, pending the determination of the actual tax liability, if any. In a counter-affidavit attached to its notice of appeal, MultiChoice stated that depositions in FIRS’ affidavit are arbitrary and contrived.
It branded, as false, the FIRS’ claim that it receives third party payments as part of its revenue streams, saying it only receives payments on its products and services through third-party platforms such as Interswitch and Quickteller, which are only payment channels.
MultiChoice denied that it receives most of its revenue through online channels, stating that its dealers and agents sell decoders and dishes for cash, while it receives most of its payments in its bank accounts.