The Federal Inland Revenue Service (FIRS) yesterday directed commercial banks to freeze the accounts of MultiChoice Nigeria (MCN) Limited and MultiChoice Africa (MCA) in a bid to recover N1.8 trillion tax debt.
According to the revenue collector, some banks have been appointed to freeze the accounts of the Cable television service providers.
FIRS Director in charge of Communications and Liaison Department Abdullahi Ahmad said in a statement in Abuja that the appointment of banks as accounts freezing agents followed the groups’ refusal to grant the service access to their server for audit.
The N1.8 trillion is said to be the taxes the companies owe Nigeria which contributes 34 per cent of their total revenue in Africa.
FIRS described the level of tax evasion by the two firms as “alarming,” adding that MCA has never paid a kobo to the Federal Government as Value Added Tax (VAT) since it began business in the country.
It also accused MCN of not “ giving accurate information on the number of its subscribers and income” in the country.
FIRS Executive Chairman Muhammad Nami said the decision was taken due to MCN’s persistent breach of agreements and undertakings with the revenue agency.
The agency further stated that the agent banks should notify it of “any transactions before execution on the account, especially transfers of funds to any of their subsidiaries.”
