Africa’s leading pay-TV conglomerate, MultiChoice Group (MCGJ.J), announced on Thursday that its subsidiary entities have reached a resolution with Nigerian tax authorities regarding a longstanding tax dispute.
The settlement involves a total tax payment amounting to approximately $37.3 million (R709 million).
The dispute arose when the Nigerian Federal Inland Revenue Service (FIRS) froze the accounts of MultiChoice Nigeria in 2022. Subsequently, the FIRS issued a tax claim of N1.8 trillion ($1.27 billion) for MultiChoice’s operations in Nigeria, alongside an additional claim of $342 million for value-added taxes.
In a statement released on Thursday, MultiChoice Group disclosed that the combined tax liability of N35.4 billion owed by MultiChoice Nigeria and MultiChoice Africa Holdings will be settled by deducting the amount from security deposits and good faith payments.
This resolution marks a significant step forward in resolving the tax dispute between MultiChoice and Nigerian tax authorities. It underscores MultiChoice’s commitment to compliance and cooperation with regulatory bodies in the countries where it operates.
The settlement is expected to provide clarity and certainty for MultiChoice’s operations in Nigeria, enabling the company to continue providing its services to millions of subscribers across the country.
MultiChoice Group remains dedicated to fostering positive relationships with regulatory agencies and stakeholders in Nigeria and beyond, as it continues to contribute to the growth and development of the African entertainment industry.
