News
N1.8 trillion tax evasion: Tribunal orders DSTV to pay 50% tax backlog before hearing appeal
The Tax Appeal Tribunal (TAT) sitting in Lagos on Tuesday, 24th August , 2021 ordered Multichoice Nigeria Limited, owners of popular cable television services, DSTV, to pay 50 per cent of N1.8 trillion which the Federal Inland Revenue Service (FIRS) has determined through a forensic audit to be the amount in taxes that Multichoice Nigeria Limited had failed to pay to the Government of Nigeria in past assessment years.
The five-member TAT led by its Chairman, Professor A.B. Ahmed, issued the order following an application to it by the Counsel to FIRS.
In a statement by the Director of Communications and Liaison Department, Abdullahi Ismaila Ahmad which was made available to CAPITAL POST on Wednesday in Abuja, he said the Counsel made the application under Order XI of the TAT Procedure Rules 2010 which enables a party to make an application at any stage of the proceedings.
Counsel for FIRS drew the attention of the Tribunal to Paragraph 15(7) of the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act 2007 and urge the Tribunal to direct Multichoice Nigeria Limited to deposit with the FIRS 50 percent of the amount of the Assessment under Appeal as security and a condition that must be fulfilled before the prosecution of the Appeal brought before TAT.
In certain defined circumstances to which the Multichoice appeal fits, Paragraph 15(7) of the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act 2007 (FIRS Act) requires persons or companies seeking to contest a tax assessment to pay all or a stipulated percentage of the tax assessed before they can be allowed to argue their appeal contesting the assessment at TAT.
Multichoice Nigeria Limited filed the matter at the Lagos TAT following its dispute over FIRS’ issuance of Notices of Assessment and Demand Note in the sum of N1, 822, 923,909,313.94k on 7 April 2021.
The amount constitutes what the FIRS calculated as due in taxation to the Federal Government of Nigeria from Multichoice after an investigation over several months to determine the extent to which Multichoice has been evading taxes in Nigeria.
At Tuesday’s hearing of the matter in Appeal No: TAT/LZ/CIT/062/2021 19/08/2021 (Multichoice Nigeria Limited v. Federal Inland Revenue Service), Multichoice Nigeria Limited amended its Notice of Appeal and thereafter sought through its counsel, Bidemi Olumide of AO2 Law Firm for an adjournment of the proceedings to enable it to respond to the FIRS’ formal application for accelerated hearing of the Appeal and prayer before the TAT directing Multichoice to produce before the Tribunal the integrated Annual report and Management Account Statements of Multichoice Group Ltd for Tax Years 2012 to 2020, among other prayers.
In response, however, the FIRS Counsel asked TAT to issue an order requiring that Multichoice makes the statutory deposit of 50% of the disputed sum.
After hearing arguments from both sides, TAT upheld the FIRS submission and directed Multichoice Nigeria Limited to deposit with the FIRS an amount equals 50 percent of the Assessment under the Appeal plus a sum equal to 10% of the said deposit as a condition precedent for further Hearing of the Appeal.
Thereafter, TAT adjourned the Appeal to 23 September 2021 for report of compliance with its Order and continuation of the hearing, subject to compliance with the Tribunal’s order.
The Rivers State chapter of the All Progressives Congress (APC) has declared that it has been vindicated by recent revelations from the state’s former Head of Service, Dr. George Nwaeke.
The Rivers APC Chairman, Chief Tony Okocha, stated this in a statement he personally signed and made available to journalists on Wednesday.
The former Head of Service, who recently resigned had alleged that the suspended Governor, Siminalayi Fubara, was directly responsible for the political crisis in the state and the bombing of the State House of Assembly.
In response, the Rivers State APC asserted that Nwaeke’s testimony aligns with the party’s long-held position, as frequently stated by Chief Okocha, that the suspended governor was the architect of the state’s political crisis, including masterminding the October 29, 2023, bombing of the State House of Assembly.
Chief Okocha further emphasized that Nwaeke’s account, given his high-ranking position in the state, cannot be dismissed as mere speculation.
He said attempts to discredit the former Head of Service will not deter him from exposing the alleged corruption and misconduct that the APC has repeatedly highlighted.
“What is most interesting to the APC in Rivers State as a responsible political party is that Dr. George Nwaeke’s revelations and testimonies of how suspended Governor Siminalayi Fubara and his squad bombed the Rivers State House of Assembly is an eye witness account.
“Again , it has clearly vindicated the APC in Rivers State as the only visible and viable opposition political party in the State, and has cemented the love for the party in the heart of well meaning Rivers people as the voice of the voiceless, and the hope for a better Rivers State.
“The revelations made by the former Head of Service in Rivers State has further positioned her as a political party with high level of integrity, and the hope of Rivers people for a viable alternative to produce the Governor of Rivers State in 2027.
“The verbal attacks staged against the resigned Head of Service will not deter him from exposing the corruption within Sim Fubara’s administration, which we have consistently highlighted as the opposition party. On this matter, the APC shall function as watchdogs”, the party stated.
Chief Tony Okocha expressed confidence that security agencies would thoroughly investigate the matter.
“The APC in Rivers State strongly believes that the relevant security agencies will be professional enough to get to the root of the matter and make their findings public”, he said.
A coalition of civil rights organizations, the Centre for Credible Leadership and Citizens Awareness (CCLCA), has called for an immediate and thorough investigation into the allegations leveled against suspended Rivers State Governor, Siminalayi Fubara, by Dr. George Nwaeke, the former Head of Service of the state.
During a press briefing in Abuja on Wednesday, Dr. Gabriel Nwambu, Director General of the CCLCA, urged the Nigerian Police Force (NPF), Department of State Services (DSS), and the Economic and Financial Crimes Commission (EFCC) to take swift action in probing the allegations. He emphasized that if proven true, these claims pose serious risks to governance and democracy.
The coalition, comprising 30 civil society organizations, stands in solidarity with Dr. Nwaeke, who has expressed willingness to provide evidence of alleged corruption and constitutional breaches involving Governor Fubara and his Chief of Staff, Mr. Edison.
“We collectively urge the relevant authorities to act swiftly and transparently. Addressing these allegations is critical to restoring public confidence in governance at both the state and national levels,” Dr. Nwambu stated.
He commended President Ahmed Bola Tinubu for his intervention in Rivers State, which led to the declaration of a state of emergency, a move he described as crucial for stabilizing the region.
Dr. Nwaeke’s accusations against Governor Fubara include:
Arson and Sabotage: Allegedly instructing his Chief of Staff to burn down the Rivers State House of Assembly to prevent impeachment proceedings, a violation of Section 14(2)(b) of the 1999 Constitution.
Corruption and Financial Misconduct: Claims of large sums of money being used for personal and illegal activities, contravening Section 15(5) of the Constitution.
Threats to Public Safety: Alleged plans to sabotage state infrastructure, potentially inciting public disorder, which falls under Section 1 of the Terrorism Prevention Act (2011).
Collusion with Militant Groups: Alleged meetings between the governor, his Chief of Staff, and militant leaders, posing a threat to national security and violating Section 43 of the Constitution.
Suppression of Labour Rights: Alleged attempts to bribe labour leaders to silence dissent, contravening Section 40 of the Constitution, which guarantees freedom of assembly.
The coalition has urged law enforcement agencies to ensure a thorough, transparent, and expedited investigation into these allegations.
Deputy Speaker of the House of Representatives, Rt. Hon. Benjamin Okezie Kalu has appointed Sam Ifeanyi Hart, Esq. as his new Chief of Staff (CoS).
Hart replaces Hon. Toby Okechukwu who was recently appointed Executive Director, Projects of the newly established South East Development Commission (SEDC).
Prior to his appointment, Hart served as Special Adviser to the Deputy Speaker on Public Affairs and has an extensive background in training and consultancy.
Hart also previously served as Director-General, Abia State Marketing and Quality Management Agency from 2019 to 2023 after occupying other appointive positions.
He was also a member of National Institute for Policy and Strategic Studies (NIPPS), Kuru where he attended the Senior Executive Course 45, serving as Course Secretary-General.
He has also served on the Boards of several corporate and non-governmental entities.
Hart brings a wealth of knowledge and experience to his new role, with a distinguished career spanning law, leadership, and public service.
A lifelong learner, he holds multiple academic qualifications, including a Master’s Degree in Environmental Law (LLM) and a Bachelor’s Degree in Law (LLB) from Abia State University.
The new Chief of Staff is also currently pursuing a Doctorate Degree in Law.
A seasoned professional, Hart has attended prestigious institutions, including the GOTNI Leadership Centre, National Institute for Policy and Strategic Studies (NIPPS), and the School of Politics, Policy and Governance (SPPG).
He is also a member of several professional bodies, including the Chartered Institute of Directors of Nigeria (M.IoD), Nigerian Institute of Chartered Arbitrators (ACIArb), and the Nigerian Bar Association (NBA).
As Chief of Staff, Hart will provide strategic guidance and support to the Deputy Speaker legislative activities, leveraging his expertise to drive policy initiatives and promote good governance.
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