MultiChoice, Africa’s biggest pay-TV operator, has successfully reached a landmark settlement with the Federal Inland Revenue Service (FIRS) in Nigeria.
The settlement pertains to the contentious tax assessments raised against MultiChoice Nigeria (MCN) in April 2021 and MultiChoice Africa Holdings BV (MAH) in June 2021, totaling a staggering R705 million.
The company informed investors on Thursday that MultiChoice, FIRS, MCN, and MAH have concluded a ‘without prejudice or precedent’ agreement. This agreement marks a pivotal moment in resolving all outstanding matters between the involved parties.
Under the terms of the settlement, MCN and MAH have agreed to pay a cumulative tax amount of NGN35.4 billion ($37.3 million). This payment will be offset against the security deposits and good faith payments made by the companies to date.
The resolution underscores MultiChoice’s commitment to adhering to regulatory obligations while fostering positive relationships within the jurisdictions it operates. The settlement not only provides clarity on tax liabilities but also paves the way for continued operations and investment in Nigeria’s dynamic entertainment landscape.
The conclusion of this settlement reflects MultiChoice’s proactive approach in addressing complex regulatory challenges. By swiftly resolving the dispute, the company demonstrates its dedication to maintaining transparency and compliance in its business dealings.
This settlement is expected to reassure investors and stakeholders about MultiChoice’s robust governance framework and its ability to navigate regulatory complexities effectively. It underscores the company’s unwavering commitment to upholding legal and fiscal responsibilities across its global operations.
As MultiChoice continues to expand its footprint across Africa and beyond, this settlement sets a positive precedent for future engagements with regulatory authorities. It reaffirms MultiChoice’s status as a responsible corporate citizen committed to contributing to the economic development and regulatory compliance in the regions it serves.
