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MultiChoice Gets Breather in  FIRS ‘s N1.8 Trillion Tax Claims

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Lagos zone of the Tax Appeal Tribunal (TAT) hearing the N1.8 trillion tax dispute between the Federal Inland Revenue Service (FIRS) and MultiChoice Nigeria has announced October  20 as the date for the ruling on the matter.

MultiChoice Gets Breather in  FIRS ‘s N1.8 Trillion Tax Claims

The announcement was made by Professor AB Ahmad, the tribunal chairman, at the resumed hearing. MultiChoice described the alleged tax liability as a product of “hastiness, lack of thoroughness and presumptuousness”.

The saga which began earlier this year has taken several dramatic twists akin to MTN, communications giant, which also a couple of years back faced the censure of Nigerian authorities over disputed regulatory issues, involving the non-disclosure of subscribers.

At the hearing, counsel to the FIRS urged the tribunal to demand proof of deposit of N900billion (50 per cent of the alleged tax liability) it ordered MultiChoice to make on 24 August before the continuation of its appeal.

The FIRS argued that Paragraph 15(7) of the Fifth Schedule to the FIRS (Establishment) Act 2007 compels a taxpayer disputing its assessment to make a statutory payment of 50 per cent of the disputed sum before the tribunal could prosecute an appeal brought before it.

The agency stated that in the absence of a proof of deposit, it should discontinue hearing of the appeal and enter judgment against MultiChoice.

MultiChoice, however, stated that it has complied, as the referenced section of the FIRS Act does not compel it to pay N900billion but an amount equal to its tax in the preceding year of assessment or one half of the disputed tax assessment under appeal, whichever is the lesser amount plus 10%.

MultiChoice stated that in fulfillment of the condition and demonstration of good faith, it deposited N10billion with the FIRS pending the determination of the actual tax liability, if any. In a counter-affidavit attached to its notice of appeal, MultiChoice stated that depositions in FIRS’ affidavit are arbitrary and contrived.

It branded, as false, the FIRS’ claim that it receives third party payments as part of its revenue streams, saying it only receives payments on its products and services through third party platforms such as Interswitch and Quickteller, which are only payment channels.

It also faulted the FIRS’ inclusion of DAAR Communications and Channels Television among third parties from which it receives payments, saying the two broadcasters free-to-air offerings on its platforms.

MultiChoice similarly denied that it receives most of its revenue through online channels, stating that its dealers and agents sell decoders and dishes for cash, while it receives most of its payments in its bank accounts.

In similar vein, MultiChoice said the FIRS erred in its claim that it receives revenues from outside Nigeria, as it services are limited to country.

It noted that what the FIRS interpreted as remittances from outside Nigeria was a summary of the 2019 and 2020 financial performance of MultiChoice Group (MCG).

It branded as misleading FIRS’ assumption that Nigeria accounts for 34 per cent of MCG’s subscription revenue, saying the figure refers to 34 per cent of the revenue from the rest of Africa except South Africa.

“Of the 7.7million active subscribers that MCG had in the rest of Africa in 2019, Nigeria accounted for 34 per cent of them. That is about 2.6million thereof. It is important to re-stress that the 34 per cent of active subscribers in 2019 is 34 per cent of the active subscribers in the rest of Africa and not 34 per cent of MCG’s revenue as erroneously claimed by the Applicant,” MultiChoice said.

On the allegation that it has refused to cooperate with the FIRS over forensic systems audit, MultiChoice said aside from being compliant in its tax obligations, it is the FIRS that has frustrated the audit by demanding a payment of any of 10%, 25%, 50% or 100% of the disputed tax sum as a condition.

 

 

 


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VFD Group Proposes SplitXchange for Financing Nigeria’s Creative Industry

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VFD Group Plc has proposed the introduction of a specialized Exchange that would address the issue of financing in Nigeria’s entertainment and creative industries to bolster foreign exchange earnings and economic development.

Folagbade Adeyemi, the Managing Director of Splitar Limited,  stated this while speaking at the Capital Market Correspondents Association of Nigeria (CAMCAN) quarterly Forum, sponsored by VFD Group Plc.

Adeyemi revealed that the Group is actively pursuing an exchange platform tailored to the media and entertainment sector, offering diverse investment opportunities for both domestic and international investors.

Currently in its development stage, SplitXchange when launched, would offer a platform for financing the media and entertainment industry, among other alternative assets.

According to him, “Seeing the huge potential in alternative assets, Splitar Holdings, through Split Exchange, would drive the alternative assets space with its revolutionary digital exchange.”

He emphasized the potential of this sector to significantly improve the GDP of the country and called for a collaborative approach towards establishing robust frameworks and clear guidelines to support investment in alternative assets leveraging technology.

“Unless we collaboratively set up institutions that can provide data around these asset classes and place a true value on these asset creators to make seeking finance a lot easier, we will not see significant returns.

“A lot of transactions have been ongoing within that space which are not captured within the country’s value chain. That is what SplitXchange seeks to address.”

With Nigeria’s estimated population at 208.8 million people, Adeyemi highlighted the increasing demand for Nigerian content locally and on a global scale.

Speaking on the theme: “Beyond Tradition: Increasing Relevance of Alternative Assets in the Capital Market,” Adeyemi lamented the absence of robust funding pillars in the country.

He emphasized the potential of Entertainment and Media, noting that globally there is an average market size of $41 billion as of 2021 with an estimated growth of 4.2 per cent.

While pointing out investments by Netflix and Amazon, which have churned out blockbuster movies that have gained viewership and streams across the globe, he noted that Nigeria’s biggest investor in the form of Pension Assets was yet to invest in the entertainment or streaming services.

He stressed the need to solve the problems of liquidity, efficiency, and barriers to entry in the country.

“In today’s market, the quick conversion of assets into cash is a challenge due to the absence of a well-structured marketplace that oversees and regulates these assets.

“The automation of processes such as compliance, escrow account management, dividend distribution, corporate action management, and drag-along actions technology presents a significant challenge in today’s alternative market. The high initial cost of assets in this market restricts participation to only affluent individuals and corporate investors,” he said.

He noted that the sector remains excluded from the organized financial sector due to the inability of intermediaries to recognize Intellectual Property (IP) as suitable collateral to access funding. “Projects are financed informally through a network of angel investors, high net worth individuals, non-governmental organizations, government, and personal savings,” Adeyemi said.

Furthermore, he pointed out that investors and asset creators face challenges when seeking investment opportunities or raising capital through traditional financial avenues.

“Traditional financial institutions are ill-equipped to appraise industry opportunities due to poor visibility, data, and income/revenue leakages leading to mispricing through high-interest rates, market illiquidity of associated securities, poor market depth, and lack of accessibility for retail investors,” he said.


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Konga Travel Commences Canadian Visa Services for Professionals and Students

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Konga Travels and Tours, a leading provider of travel services in Nigeria is pleased to announce the launch of its Canadian visa assistance services through strategic partnership with a licensed Canadian immigration company.

Konga Travels is now equipped and in a vantage position to assist clients in realizing their relocation dreams.

The new Canadian visa services cater to the travel needs of diverse category of individuals including students, workers, professionals, and investors looking for new opportunities in Canada.

Applicants can get exclusive packages on business immigration, study in Canada, work permits, as well as visit and tourist visa services with the professional assistance of Konga Travels and Tours.

The Business Immigration visa is tailored to investors interested in conducting business activities in Canada with a pathway to permanent residency. The Study in Canada visa service caters to students aspiring to pursue undergraduate or postgraduate studies in foreign institutions renowned for their academic excellence and global recognition.

Okezie Akaniro, Senior Vice President of Konga Online Limited expressed excitement about the expansion of the company’s service portfolio saying “We are thrilled to introduce Canadian visa assistance services to our esteemed clients because we understand the aspirations of Nigerians seeking to pursue educational, professional, or business opportunities in Canada.

“This partnership underscores Konga Travels’ commitment to providing holistic travel solutions that meet the diverse needs of our customers, with our expertise and strategic collaboration, we aim to simplify the Canadian immigration process and help individuals achieve their aspirations of studying, working, or investing in Canada,” he stated.

Expressing his enthusiasm for the new service, Abiola Bakare, Business Head of Konga Travels and Tours posited, “At Konga Travels, we continuously seek ways to enhance the travel experiences of our customers.

“The introduction of Canadian visa assistance services aligns with our goal of providing end-to-end solutions and simplifying the travel process for our clients.”

Konga Travels and Tours goes beyond processing visa applications. As part of its suite of services, Konga Travels offers flight booking, hotel reservations, and tour packages. Recently, Konga Travels and Tours further enhanced its offerings by partnering with Coronation Insurance to provide comprehensive travel insurance solutions.

For further inquiries, customers are encouraged to contact Konga Travels through any of the official customer touchpoints provided here:

Phone Call: +234 809 460 5555; 0708 063 5700

WhatsApp: +234 (0) 811 211 4488

Email: [email protected]

Facebook: Konga Travel

Instagram: @kongatravel


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5 Strategies to Prevent Payment Delays from Hurting Your Business

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Payment delays pose significant challenges for businesses across Africa. Maintaining a steady cash flow is essential for business growth and sustainability, making it crucial to address late or non-payments from customers.

So, how can SMEs effectively prevent payment delays? Let’s explore five actionable strategies to keep revenue flowing smoothly.

Streamline Payment Processes
Smoother payment experiences lead to prompt payments. Simplifying the payment process for customers by offering multiple payment options enhances convenience and reduces the likelihood of delays. It is important to note that collaborating with a reliable payment gateway is fundamental in achieving seamless transactions.

Embrace Subscription Models

Adopting a subscription-based payment model ensures consistent cash flow and predictability in revenue streams. SeerBit has innovative features, such as partial debits and automatic retries which fortify this model, ensuring uninterrupted revenue even amidst payment hiccups.

Digitize Invoicing

Transitioning from paper-based to digital invoicing eliminates delays caused by delivery hiccups, while also minimizing the risk of lost documents. Digital invoicing not only streamlines payment tracking, but also enhances operational efficiency.

Implement Incentives and Penalties

Introducing incentives for early payments and penalties for late payments encourages timely settlements. Customers are motivated to pay promptly to capitalize on discounts and other special deals, while the prospect of additional charges or sanctions deters delays. Reminder notifications serve as gentle nudges, prompting customers to fulfil their payment obligations promptly.

Proactive Payment Management

Partnering with SeerBit empowers businesses to proactively manage payment collections. With a robust payment gateway offering seamless transactions, recurring payment capabilities and digital invoicing services, businesses can effectively mitigate the risks associated with payment delays.

Conclusion

Preventing payment delays is critical for sustaining business operations and fostering growth. The World Bank predicts that late payments cost the global economy over $40billion every year. By implementing these strategies and leveraging the capabilities of SeerBit, businesses can optimize their payment processes, ensuring uninterrupted cash flow and significant long-term success.


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