The Tax Appeal Tribunal on Tuesday struck out the appeal instituted by a South African company , Multi Choice Africa Holdings B.V against the Federal Inland Revenue Services, FIRS, over the disputed $342M tax for want of diligent prosecution as the Tribunal ordered the company to pay the $342M tax assessment issued to It by the FIRS.
Multichoice Africa Holdings is the parent company of Multichoice Nigeria and has engaged FIRS in legal battle over the assessment of the FIRS on it unpaid Value Added Tax (VAT) which the FIRS claimed is amounting to over $123.7 Million.
The tribunal while delivering judgment on the appeal filed by the company upheld the preliminary objection of the FIRS against the appeal of Multichoice Africa Holdings B.V.
The tribunal stated that the South African company did not comply with Order 3 Rule 6 of the Tax Appeal Tribunal (Procedure) Rules, 2021, which requires that an appellant is to deposit half of the assessed amount it is disputing before it can be heard on appeal.
In addition to depositing the sum, the appellant the tribunal said, is required to file along with its appeal an affidavit verifying the payment which the company also failed to comply with.
According to the tribunal, the sum is to be paid as a security for the hearing of any tax appeal. The rule states that “for an appeal against the tax authority, the aggrieved person will pay 50% of the disputed amount into designated account by the Tribunal before hearing as security for prosecuting the appeal”.
FIRS had served a notice of unpaid VAT on Multichoice Africa Holdings B.V. , but the company disputed the assessment and filed an appeal at the tribunal.
It however failed to comply with provisions of tax laws by its refusal to make the required deposit as stipulated by the tribunal Rules.
It will be recalled that the FIRS had served Multichoice Africa Holdings B.V. a notice of assessment of unpaid VAT on the 16th of June 2021.
The company had consequently appealed the assessment at the Tax Appeal Tribunal on the ground of being too excessive.
Multichoice Africa Holdings, the parent company of Multichoice Nigeria, though providing services to its Nigerian arm was said not to have paid Value Added Tax since it’s inception.
