This archive report was first published on 12 July 2021.
Published on July 12, 2021, Nigeria's tax authority, Federal Inland Revenue Service (FIRS), has asked lenders to freeze MultiChoice's local bank accounts over $4.4 billion tax evasion claims.
MultiChoice, a leading pay-TV operator in Africa, has been accused of breaching agreements with tax authorities by refusing to communicate and block access to their records. The company's refusal to grant access to its servers for an audit has led to the tax authority's decision.
MultiChoice, however, claims it has not received formal notification about the tax matter, sparking concerns about the company's transparency and compliance with tax laws.
This is not the first time a major telecommunications company has faced a similar issue in Nigeria. In 2019, MTN Group was accused of non-payment of taxes relating to the import of equipment and payments to foreign suppliers from 2007 to 2017. Although the case was later withdrawn, it has continued to discourage foreign investors from the country.
MultiChoice, on the other hand, has been growing rapidly, with a total subscriber base of 20.1 million viewers throughout Africa in 2020, making it one of the fastest-growing pay-TV operators globally.
