Broadcasting
MultiChoice: Andersen Faults FIRS’ Basis for N1.18trn Tax Claims
Andersen, leading tax and business advisory firm, has questioned how the Federal Inland Revenue Service (FIRS) arrived at the N1.8 trillion tax bill it slapped on MultiChoice Nigeria, warning that it could harm the reputation of both parties.
The firm’s position was contained in an article published on its website. Titled “Reputational Risks and Tax: MultiChoice as Case Study”, the article stated that the FIRS may have adopted a faulty computational premise as well as given an impression that it is prejudiced against foreign companies operating in Nigeria.
The firm described as misleading the FIRS’ claim that Nigeria accounts for 34 per cent of the total revenue of the MultiChoice Group ahead of Kenya with 11 per cent and Zambia in third place with 10 per cent as the basis for arriving at N1.8 trillion and $342 million liability.
Andersen, quoting the MultiChoice Group’s audited financial statements for 2019, said Nigeria accounts for 34 per cent of the group’s Rest of Africa (RoA), with the RoA accounting for 29.6 per cent of the group’s revenues.
“Thus, the effective total revenue of Nigeria to the group is 10.19 per cent. It is arguable that 10.19 per cent is significantly different from 34 per cent of total revenue. However, one cannot help but question whether some other parameters in the computation of the alleged tax liability are also misleading,” Andersen stated.
Andersen also argued that the press statement issued by the FIRS hints at bias.
“The FIRS Chairman observed that the issue with tax collection in Nigeria, especially from foreign-based companies conducting businesses in Nigeria and making massive profits is frustrating and infuriating,” the agency said.
This, Andersen noted, amounted to delineation of taxpayers by nationality and could create bias in the mind of the public against foreign-owned companies.
“Consequently, a routine tax audit of a foreign-based company that is profitable in Nigeria may trigger apprehension, given the perception that they are seen as worse offenders ab initio. As a matter of fact, the posture from the FIRS towards foreign-based companies may lead some to adopt the approach of being aggressive with tax planning, so that they can eventually concede to liabilities, which they believe the tax authorities will insist on establishing,” the firm said.
While it commended the FIRS increasing tax collection despite economic challenges, Andersen advised the agency to be restrained in taking actions and issuing statements capable of putting a question mark on companies’ reputations, especially in an age of social media and instant messaging. It added that it is more beneficial for tax agencies to appear friendly, fair and develop an awareness of reputational risk, especially given Nigeria’s unimpressive ease of doing business indices. It equally noted that reputational risk can lead to distrust, with the ultimate consequence of underpayment of taxes or shortfall in tax collection.
Andersen is the second major business advisory firm to question the position of FIRS.
Last week, PricewaterCoopers, in its PwC Tax Alert, faulted the ruling of the Tax Appeal Tribunal on the dispute and its interpretation by the FIRS.
The firm stated that the directive issued by the TAT does not compel MultiChoice to pay 50 percent of N1.8 trillion, being half of the disputed tax assessment before its appeal could be heard.
It said MultiChoice is only required “to deposit with FIRS an amount equal to the tax paid by Multichoice Nigeria in the preceding year of assessment or one half of the disputed tax assessment under appeal, whichever is the lesser amount, plus 10 per cent”.
Broadcasting
NCC, NBTE to formulate IP Policy for Polytechnics, Technical Institutions
The National Board for Technical Education (NBTE) has expressed its commitment to partner with the Nigerian Copyright Commission (NCC) for the creation of a robust Intellectual Property (IP) Policy tailored for Polytechnics and Technical Institutions across Nigeria.
This collaboration was agreed upon during a courtesy visit by the Director-General, NCC, Dr. John O. Asein to the Executive Secretary NBTE, Prof. Idris Muhammad Bugaje, in Abuja. The visit aimed to enlighten NBTE on the mandate of Commission and areas of possible collaboration.
Dr. Asein, represented at the meeting by Director Nigerian Copyright Academy (NCA), Mrs. Funmi Adewale and Director Planning Research and Statistics (PRS), Mr. Collins Nweke, emphasised the importance of a functional IP Policy and the need to incorporate Copyright Education into the curriculum of Technical Institutions.
The ES-NBTE who was represented by the Director, Abuja Liaison Office, Dr. Yahaya Bande gave assurances that the proposed partnership will yield results and lauded NCC’s initiatives of raising public awareness about IP and Copyright, emphasising that such efforts are crucial for enhancing the nation’s economic development.
The Commission’s representatives presented copies of the Commission’s publication “What Is Copyright” and “Copyright Act 2022” to the Executive Secretary, NBTE.
Broadcasting
NLC Shuts Lagos TV, Radio Stations over non-Implementation of N85,000 Minimum Wage
Nigeria Labour Congress (NLC), Lagos State chapter has shut down normal operations of Lagos Television, Eko FM/Radio Lagos and Lagos Traffic Radio in protest over the non-implementation of the N85,000 minimum wage to workers,
NLC, in collaboration with workers of the three broadcast stations under the aegis of Radio, Television, Theatre and Arts Workers Union of Nigeria (RATTAWU), on Monday picketed the station.
The workers, few weeks ago, had notified the management of the three stations of their readiness to down tools following the failure of the stations to implement the minimum wage being implemented by the Lagos State Government.
The workers were seen on Monday morning blocking the entrance and exit to the Agidingbi complex of the broadcast stations, displaying placards.
The placards with various inscriptions read, “Oracle is the answer, it’s all we need”, “Pay us minimum wage,” among others.
Speaking with newsmen, Comrade Funmi Sessi, chairman of NLC, said the protest was peaceful to draw the attention of the management to the demands of workers.
“We started in a peaceful manner, and we are going to end it in a peaceful manner. No body is going to push us the wall.
“I assure everybody that we shall be peaceful because we are Lagosians.
“We are here this morning you can see the workers of government in communication departments that is LTV, Eko FM, Traffic Radio, all here to show their displeasure against the injustice that is been meted out to them.
“They work to the best of their abilities and now at the receiving end by being shortchanged. And not receiving the new minimum wage as being approved and agreed by the law set by the Federal Government of Nigeria
“This is an injustice to the set of workers. The managements have been given the mandate to pay the minimum wage has been announced by the Lagos State Government. They are Lagos State workers.
“Since the government has commenced implementation of the N85,000 minimum wage since November, they have never collected the minimum wage.
“The arrears of the three months and the 13th months; they have not been enjoying the benefits. So, why this disparity for these set of workers even in the face of this hardship?
The leadership of their union had engaged the management previously. They gave a-21-day notice to dialogue.
“After several engagements with managements, they gave 14 days, then seven days. They followed due process, yet there was no resolution. Now when they saw that the workers are resolute to fight for their right, they are saying sheathe your sword.”
Comrade Sessi noted that the state governor had been doing a lot by showing compassion on workers, urging him to prevail on the management to do the needful.
“Though, the governor has been doing a lot and showing empathy to workers, we are hereby appealing to him to prevail on the management to do the needful and avoid unnecessary disruption to operations in the interest of the majority.
“We will sustain this struggle until the government listens and takes appropriate action on these demands,” she said.
Broadcasting
New WAEC Program Offers Faster Route for Students to Improve WASSCE Grades
West African Examinations Council (WAEC) in Ghana, has announced a new initiative, which will allow students to resit their WASSCE papers as early as January and February 2025.
This is a change from the norm in Ghana, where candidates had to wait for the next private exam cycle.
The Head of Public Affairs at WAEC, John Kapi, disclosed this while speaking on JoyNews’ AM Show in Ghana.
He explained that the new programme, referred to as WASSCE PC1, provides a faster route for students to improve their grades.
“Students who access their results now and realise they need to resit one or two papers have until 8th January to register online through our website or at WAEC-accredited internet cafés. The exams will take place from 24th January to 15th February 2025,” Mr Kapi stated.
According to him, to aid candidates in their preparations, WAEC plans to expedite the release of chief examiners’ reports, saying, “These reports will provide detailed feedback on where students may have gone wrong and how they can better approach their studies and the examination process.
“We’ve advertised this programme widely through banners, our website, and our results checker platform to ensure that both students and parents are aware,” Mr Kapi added.
He said students whose results have been cancelled are also eligible to sit the WASSCE PC1 exams, provided they have not been banned for some years for malpractice.
“For now, the exams will be conducted in regional capitals due to the limited number of candidates. Prospective participants are urged to complete their registration by the 8th of January to take advantage of this opportunity.”
WAEC, however, expressed optimism that this initiative will allow candidates to quickly improve their grades and qualify for the next cycle of admissions, avoiding a year-long delay in their academic progress.
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