MultiChoice to appeal to Federal High Court after losing its Tax Tribunal appeal over Nigeria's claim that pay-TV operator owes it $123.7 million in unpaid tax.

by Thinus Ferreira

MultiChoice will now go to court in an escalating row with Nigeria's tax authority after Africa's largest pay-TV operator this week lost its appeal at the West African country's Tax Appeal Tribunal, with Nigeria's tax collector alleging and demanding that MultiChoice owes it a staggering $123.7 million (R1.88 billion) in unpaid tax.

It's one of two tax claims that MultiChoice is involved in in Nigeria.

On Tuesday Nigeria's Tax Appeal Tribunal threw out MultiChoice Africa's appeal brought by MultiChoice Nigeria over allegations that MultiChoice owes $123.7 million in unpaid Value Added Tax (VAT).

Nigeria's Federal Inland Revenue Service (FIRS) slapped MultiChoice with the $123.7 million dodgy "tax backlog" claim, and added another $218 million penalty, bringing the total to $342 million.

Hilariously, Nigeria' Tax Appeal Tribunal, on Tuesday said that it dismissed MultiChoice's appeal because the company failed to comply with the rules of the appeal.

MultiChoice neither deposited money as a bizarre requirement for the appeal to be heard, and MultiChoice then also apparently failed to adhere to "Order 3 Rule 6 of the Tax Appeal Tribunal (Procedure) Rules, 2021" stating that an appellant like MultiChoice must file an affidavit "verifying the payment".

MultiChoice didn't pay a deposit and didn't file an affidavit.

MultiChoice is embroiled in two cases with Nigeria's FIRS - the $342-million case against MultiChoice Africa Holdings, as well as a N1.8-trillion (R68 billion) tax claim against MultiChoice Nigeria.

MultiChoice in a statement slammed the Tax Appeal Tribunal's decision and said that MultiChoice Nigeria will now lodge an appeal against the ruling of the Tax Appeal Tribunal at Nigeria's Federal High Court.

MultiChoice said that the Tax Appeal Tribunal's appeal ruling failed to look at the merits of the pay-TV operator's case.

"MultiChoice Africa Holdings respectfully disagrees with the ruling, which was based on a technicality rather than the merits of the case. Therefore, we will be lodging an appeal at the Federal High Court against the ruling."

"This tax appeal is a separate and distinct matter from the appeal launched by MultiChoice Nigeria (MCN), in which the Tax Appeal Tribunal found in MultiChoice Nigeria's favour last week, allowing it to proceed with that appeal," MultiChoice says.

ALSO READ: MultiChoice's share price falls nearly 8% on Wednesday to 11-month low as Nigeria's shakedown for money from the pay-TV operator continues and country demands MultiChoice pays 50% 'deposit' of R65 billion in dodgy 'tax backlog' claim.

ALSO READ: ALSO READ: Nigeria's revenue service orders banks to immediately freeze MultiChoice Africa's Nigerian bank accounts citing refusal to give access to servers, demands R63 Billion.