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MultiChoice: Andersen Faults FIRS’ Basis For N1.8trn Tax Liability

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Leading tax and business advisory firm, Andersen, 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”.

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APC Is Afraid Of Losing 2027 Election –Says Amaechi, Joins Protest Over E-Transmission Of Election Results

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…As Aisha Yesufu Questions Military Presence At Protest

Former Rivers State Governor Rotimi Amaechi has joined other protesters as demonstrations against the Senate’s rejection of mandatory electronic transmission of election results continued in Abuja on Tuesday.

The protest, which began on Monday, is opposed to the Senate’s decision to reject real-time electronic transmission of election results.

Amaechi, who attended the protest with his son—a medical doctor—said he brought him along in case the demonstration turns violent and injuries are sustained.

The former Minister of Transportation explained that he came with his son to demonstrate his belief that during major protests, leaders should be at the forefront with their families.

The African Democratic Congress (ADC) called on Nigerians to rise up, adding that all opposition parties ought to be on the streets to protest the Senate’s decision.

Amaechi alleged that the ruling All Progressives Congress (APC) is opposed to electronic transmission of election results because it fears losing elections.

“I believe that the opposition parties should come out—PDP, ADC, everybody should be out—to protest against the attempt of one party,” Amaechi said.

“If we come out, and they say the opposition has hijacked (the protest), what is APC doing? Are they not hijacking? What are they afraid of? I thought they said they have 31 governors. Tinubu is not Jonathan. The only way a good politician will know he has done well is by the people.”

He questioned why the party would be afraid, despite having several opposition governors and prominent politicians defecting to its ranks.

He further stated that while Senate President Godswill Akpabio and President Bola Tinubu may ignore the demands of Nigerians, opposition parties and civil society organisations would persist until the decision is reversed.

Meanwhile, operatives of the Nigeria Police Force barricaded major roads leading to the National Assembly, where the Senate is scheduled to hold an emergency plenary session on Tuesday.

The protest is being led by human rights activist Aisha Yusuf, alongside several civil society groups that initiated the demonstration on Monday.

Meanwhile, Human rights activist, Aisha Yesufu, has renewed calls for mandatory real-time electronic transmission of election results, while questioning the deployment of soldiers to protests at the National Assembly in Abuja.

Yesufu spoke on Tuesday at the protest ground in Abuja, where demonstrators gathered under the “Occupy National Assembly” campaign to oppose the Senate’s rejection of a clause mandating real-time electronic transmission of election results.

“All we are asking for is real-time electronic transmission of the electoral results. We are here, and we are waiting for the lawmakers we sent to Abuja to pass the bill the way it should be passed. All citizens are asking for is electronic transmission, real-time. I do not see any reason why that is a problem,” Yesufu said.

The activist also criticised the presence of soldiers at the protest venue, arguing that their deployment against peaceful demonstrators was unconstitutional.

“To every soldier that you brought here, know that you are here unconstitutionally because your job description does not include being here against protesters. Before you pull that trigger or throw that canister, ask yourself: Is it constitutional or unconstitutional?” she said.

Yesufu referenced past security failures and questioned why troops were deployed to the protest instead of areas facing terrorist threats.

“There are soldiers that should be in Kwara defending the people, yet they are here. Terrorists threatened citizens yesterday. The last time they did, over 200 people were killed. They operated from sunset to sunrise,” she said.

However, operatives of the Nigeria Police Force barricaded major roads leading to the National Assembly complex ahead of an emergency plenary session scheduled for Tuesday.

The protest, which began on Monday, is being led by Yesufu alongside several civil society organisations demanding a reversal of the Senate’s decision on the Electoral Act amendment.

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‘We Were Never Friends,’ Governance Philosophy Differs, El-Rufai Explains Rift with Tinubu

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Former Kaduna State Governor, Nasir El-Rufai has clarified the reasons behind his reported differences with President Bola Tinubu, stressing that the disagreement was never personal.

Speaking in an interview with Trust TV, El-Rufai said he and Tinubu never had a close personal relationship.

“I was never Tinubu’s friend. We never had a personal relationship like the one I had with General Buhari,” El-Rufai said.

He explained that his initial support for Tinubu was driven by principle rather than personal affinity.

“I was approached by certain Islamic stakeholders from the southwest to support the emergence of a southwest Muslim presidential candidate.

“That is how the discussions started. As governor of Kaduna and one of the founders of APC, I knew there was an understanding that after 8 years of Buhari, power would return to the south. It wasn’t about Tinubu; he was merely an accidental beneficiary,” he stated.

El-Rufai emphasized his commitment to party unity once Tinubu won the APC primaries.

“It is a principle of mine to fight for the candidate of my party in every election, whether I like the candidate or not.

“The fact that he emerged as the party’s candidate meant I would give everything to ensure he won,” he said.

The governor further explained that his differences with Tinubu were rooted in governance philosophy.

“We didn’t fall out; we didn’t find areas of agreement. I am in government to serve the public and deliver results not to enrich myself or appoint cronies.

“The philosophy of this government is contrary to everything I’ve been taught as a Muslim, a northerner, and a Nigerian. They came to govern the cake, to enrich themselves. We are different people parallel lines that will never meet,” El-Rufai said.

He also noted that even if he had accepted Tinubu’s publicly offered ministerial position, he would have left the government due to those fundamental differences in philosophy.

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It’s Possible For Senate To Vote Publicly On Real-Time E-Transmission Of Election Results — Ningi

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Senator representing Bauchi Central at the National Assembly, Abdul Ningi, on Monday said the Senate could make the adoption of the votes and proceedings on the electronic transmission of election results public amid ongoing controversy over the issue.

Ningi stated this on Channels Television’s Politics Today ahead of the upper chamber’s emergency plenary session scheduled for Tuesday, following ongoing debates over the e-transmission of election results after the Electoral Act amendment bill passed the third reading at the Senate.

Asked during the interview whether it was possible for the voting process at the Senate to be made public so that Nigerians could know which senator voted for or against the real-time transmission of election results, Ningi said, “I think it’s possible. It depends on the presiding officer because the law provides that.

“You can stand up and say, ‘I, Ningi, I accept e-transmission in real time.’ I sit down. It’s recorded every other senator, and that is the only way we need to move forward.”

“One thing that is very important is that the votes and proceedings have not been captured. So tomorrow, we need to look at what the votes and proceedings captured are. Is it a transfer?

“There was a motion for amendment by Manguno, and then the question was put. Who asked the question? Why was the question raised?

“Was it discussed? It is important that when you bring a motion on something that you have no idea of, one of the reasons why maybe people are not so happy is that the Senate President should have asked us as a committee, ‘Please, educate us on this issue that this Moguna has raised,” the Bauchi lawmaker added.

Ningi stated that the issue was not about one political party or the other.

“I’m here, and I’m telling you with all sense of responsibility that this is not a party thing. It has never been seen as a party thing up to the moment we went into the committee of the whole.

“If tomorrow the Senate President decides to say, ‘Is it transfer or transmission, and the gavel was sealed on transfer. They (the majority) have their way,” he said.

The federal lawmaker also expressed displeasure over what he described as the condemnation of the Senate “in its entirety” over the matter.

“I feel so sad and outraged myself when I see the condemnation across this country condemning the Senate in its entirety. And that’s why for us, we need to tell the story.

“And I can tell you 98 per cent of the senators are in agreement with the submission made by the House. I don’t know how they are trying to make it a party affair. I don’t think so.

“As I told you, APC governors have presented their submission, PDP…, and they are all saying e-transmission,” Ningi stated on the programme.

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