The FIRS alleged that MultiChoice Nigeria (MCN or the Company) had unpaid tax liability of about N1.8 trillion, and directed the company’s banks to freeze its accounts, recover the said sum and pay over to the FIRS. MCN disputed the assessment and filed an appeal at the Tax Appeal Tribunal (TAT).
The FIRS raised an oral preliminary objection challenging the jurisdiction of the Tribunal to entertain the appeal, on the ground that the suit did not meet the condition precedent to its institution. The FIRS therefore requested the TAT to make an order compelling MCN to make a statutory deposit of an amount under the provisions of the FIRS Establishment Act (FIRSEA).
The Tribunal in its ruling cited many cases and held that the payment of the statutory deposit is a condition precedent to triggering its jurisdiction to hear the appeal. The Tribunal went ahead to order MCN to comply with the provision by making the required deposit before the adjourned date of hearing.
Read our alert for analysis of the key issues and learning points.
Download PwC Tax Alert_A review of TAT ruling in Multichoice Nigeria Limited vs the FIRS