The company says it has received no formal communication from the Federal Inland Revenue Service (FIRS) of Nigeria.
“We have not received formal notification of this matter, however, shareholders are advised that the Group is aware of reports in the media regarding an ongoing tax matter with the Nigerian Federal Inland Revenue Service,” the statement read.
“The matter is apparently based on unfounded allegations that MultiChoice Nigeria has not fully disclosed all existing subscribers to authorities,” the statement further reads.
Reports emerged Wednesday that MultiChoice together with its Nigerian subsidiary’s accounts have been frozen over non-payment of taxes to a tune of $4.4 billion.
“The companies are involved in the under-remittance of taxes which necessitated a critical review of the tax-compliance level of the company,” FIRS Executive Chair Muhammed Nami said.
This is not the first time a South African company is coming under fire for unpaid taxes in Nigeria. In 2018, telecommunications giant MTN was directed to pay over $2 billion in alleged unpaid taxes. The matter was dropped a few months later.
In its statement, MultiChoice said it is cooperating with FIRS, keeping its engagement constructive and transparent. They hope to resolve the issue amicably.
Meanwhile, they remain operational as usual, MultiChoice concluded.