MultiChoice is a sub-Saharan African entertainment platform that provides services and products such as DStv, GOtv, Showmax, M-Net, and SuperSport.
The company announced that its subsidiaries have settled with the Federal Inland Revenue Service (FIRS) and will pay approximately $37.3 million in taxes.
In 2022, FIRS closed MultiChoice Nigeria’s accounts and filed tax claims of N1.8tn ($1.27bn) for the company’s operations in Nigeria, along with a $342m value-added tax claim on MultiChoice Group.
In a statement, the group said that the total tax amount of N35.4bn to be paid by MultiChoice Nigeria and MultiChoice Africa Holdings would be offset against the security deposits and good faith payments made to date.
MultiChoice filed a lawsuit to contest the fine levied by the tax authorities, claiming that the DSTV service provider had evaded paying taxes and had refused auditors access to its servers.
Nonetheless, both parties agreed to an out-of-court settlement of their outstanding tax problems and sought a peaceful resolution of their differences.
The statement then read in part, “By the broad terms of the agreement, MultiChoice shall withdraw all pending lawsuits towards an amicable resolution of the dispute.
“Also, as part of the agreement, the FIRS commenced a forensic systems audit of MultiChoice accounts on Tuesday, 8 March, 2022 to determine the tax liability of the Company.”
Nigeria accounts for about 34% of the MultiChoice group’s overall revenue, with Kenya coming in second at 11% and Zambia in third position at roughly 10%.
As per the group’s report, around 45% of the overall revenue is generated by the remaining African countries in which the group works.