MultiChoice pays $37m to end Nigerian tax feud
MultiChoice, a digital satellite broadcasting company, has settled its tax dispute with Nigerian revenue officials after paying $37 million.
The Johannesburg Stock Exchange-listed broadcaster informed shareholders today that it has reached an agreement with Nigeria's Federal Inland Revenue Service (FIRS), regarding tax assessments levied on MultiChoice Nigeria (MCN) and MultiChoice Africa Holdings BV (MAH) in April and June 2021, respectively.
It said: “The parties (FIRS, MCN and MAH) concluded a 'without prejudice or precedent' agreement in full and final settlement of all matters in dispute. In terms of the agreement, MCN and MAH shall pay a total tax amount of NGN35.4bn ($37.3m), to be offset against the security deposits and good faith payments made to date.”
MultiChoice pioneered pay television in Nigeria, introducing the first digital satellite transmission service in 1993.
The company currently employs over 1,000 people and indirectly supports over 20,000 jobs in Nigeria.
Of the 50 countries in which the firm operates, Nigeria remains one of MultiChoice's primary markets.
Last month, the pan-African video entertainment provider firmed its commitment in the West African country by partnering with Nigeria-based KingMakers to develop SuperSportBet, a sports and casino betting platform.
This transaction is expected to benefit MultiChoice, which is expanding its entertainment ecosystem in order to generate new sources of future revenue.
Calvo Mawela, CEO of MultiChoice Group at the time, said the transaction demonstrated the company's commitment to evolving into a platform-based business driven by innovation.