The House of Representatives on Wednesday resolved to conduct urgent and comprehensive investigation into the non-remittance of South Africa Entertainment Company, Multichoice Group over non-payment of N1.8 trillion and $342 million tax revenue.
In the same vein, the House also mandated its Committee on Communication on why Nigerians are not also charged on the ‘pay as you go’ package by Multichoice as is obtainable in other countries.
The resolutions were passed sequel to the adoption of a motion sponsored by Deputy Chairman, House Committee on Finance, Hon. Saidu Abdullahi who frowned at the level on impunity being perpetuated against the Federation by some foreign corporate organizations through tax evasion.
“In his lead debate, Hon. Abdullahi observed that the Federal Inland Revenue Service (FIRS) was established in 2007 as one of the revenue collection Agencies, and is expected to collect revenue on behalf of the Federation and remit same to the Government’s Treasury.
“The House also notes that the oversight functions of the National Assembly as provided by sections 88 and 89 of the 1999 Constitution (as amended) are to enable the Legislature to carry out investigation within its legislative competence in order to prevent and expose corruption, inefficiency or waste in the execution or administration of laws made by it.
“The House is aware that Multichoice, a prominent multinational corporation operating in Nigeria, has been accused of non-remittance of tax revenues due to the Federation, as evidenced by the suppression of information discovered from the submissions in their home country.
“The House is also aware of the fact that Nigerian Economy is currently facing significant challenges, with dwindling revenue posing a threat to the overall fiscal stability and development of the country.
“The House is cognisant that the Federal Inland Revenue Service had engaged a consultant in 2021 under a Whistle blowing contract to carry out an audit of the tax obligations of Multichoice Nigeria and MultiChoice Africa with a view to ascertaining the Company’s tax indebtedness to the Country. Their findings led to a back audit and investigation carried out by the FIRS from 2011 to 2020.
“The House is also cognisant of the previous attempts by FIRS to recover the unpaid taxes through legal means; including court proceedings and the subsequent resolution to settle out of the court by both parties has not yielded the desired result.
“The House observed that the systems audit and investigation revealed enormous indebtedness to the tune of over N1.8 trillion in back total taxes for MultiChoice Nigeria, and $342 million in Value-added tax, for MultiChoice Africa that had never paid any taxes since they started business operations in Nigeria. Both amounts were levied upon the Multichoice Group by the FIRS.
“The House is concerned that there are ongoing arrangements to sell Multichoice Nigeria and other Multichoice Group Subsidiaries in Nigeria to a foreign Interest, while this tax indebtedness remain outstanding.
“The House is worried that if urgent actions are not taken to recover these tax revenues from the Multichoice Group, Nigeria may lose such huge revenue that can inject life into the economy.
“The House acknowledge the responsibility of the House to uphold the principles of transparency, accountability and the rule of law in matters pertaining to public finance and taxation.
“The House assert the urgency and necessity of conducting a thorough investigation into the non-remittance of tax revenues by Multichoice to the Federation, with a view to ascertaining the veracity of the allegations and taking appropriate action to safeguard the interests of the Nigerian people,” he noted.
Worried by the development, the House cautioned the potential buyers of Multichoice Nigeria, Multichoice Africa or any other Subsidiaries of the Multichoice Group operating in Nigeria to be aware of the alleged outstanding indebtedness which may have been covered in their papers.
To this end, the House mandated the Information to initiate an urgent and comprehensive investigation into the non-remittance of tax revenues by Multichoice to the Federation with a particular focus on the suppression of information discovered from their submissions in their home country and report back to the House within four weeks.
