Pay-TV group MultiChoice has reached an amicable comprise with Nigerian authorities regarding its tax affairs in that country.
MultiChoice, which had been feuding with Nigerian Federal Inland Revenue Service (FIRS), announced to shareholders today that it has struck a deal on pending tax matters.
“MultiChoice Nigeria and FIRS have agreed to an amicable resolution of the pending tax matters which led to a series of lawsuits. In broad terms of the agreement, MultiChoice will withdraw all pending lawsuits and FIRS resumed a forensic systems audit of MultiChoice accounts on Tuesday, 8 March, 2022, to determine the tax liability of the company,” reads the advisory to shareholders.
It adds: “With the agreement and the resumption of the forensic systems audit, it is anticipated that the matters will be resolved expeditiously and shareholders will be kept informed of progress in this regard.”
The squabble between the Johannesburg-headquartered pay-TV group became public knowledge in July last year but at the time MultiChoice rejected claims that it is feuding with Nigerian revenue authorities over an alleged breach of agreements and denying officials access to its records for auditing.
At the time, media reports suggested that the FIRS had ordered banks to freeze the group’s banking accounts and recover $4.4 billion (R63 billion) for the alleged breach.
MultiChoice pioneered pay-TV in Nigeria, launching the first digital satellite broadcasting service in 1993.
The company currently employs over 1 000 employees while indirectly supporting over 20 000 more jobs in Nigeria.
Nigeria remains one of the MultiChoice key markets out of the 50 countries the company has operations.
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