MultiChoice has never paid VAT since its inception ― FIRS By Emma Ujah

The Federal Inland Revenue Service (FIRS) has raised alarm over the level of non-compliance by Multi-Choice Africa (MCA), the parent Company of Multi-Choice Nigeria (MCN). According to FIRS, the company which provides services to MCN has never paid Value Added Tax (VAT) since its inception. This was revealed in a statement by the Executive Chairman, Muhammad Nami. Nami also revealed the FIRS has appointed Nigerian Deposit Money Banks as agents to freeze and recover the sum of N1.8 trillion from accounts of Messrs MultiChoice Nigeria Limited (MCN) And MultiChoice Africa (MCA). The FIRS boss explained that the decision to appoint the banks as agents and to freeze the accounts was as a result of the group’s under-remittance of taxes and continued refusal to grant FIRS access to its servers for audit. “The level of non-compliance by Multi-Choice Africa (MCA), the parent Company of Multi-Choice Nigeria (MCN) is very alarming. The parent company, which provides services to MCN has never paid Value Added Tax (VAT) since its inception. “It was discovered that the companies persistently breached all agreements and undertakings with the Service, they would not promptly respond to correspondences, they lack data integrity and are not transparent as they continually deny FIRS access to their records. “Particularly, MCN has avoided giving the FIRS accurate information on the number of its subscribers and income. The companies are involved in the under-remittance of taxes which necessitated a critical review of the tax-compliance level of the company.” The chairman said that the group’s performance does not reflect in its tax obligations and compliance level in Nigeria. “The issue with Tax collection in Nigeria, especially from foreign-based Companies conducting businesses in Nigeria and making massive profits is frustrating and infuriating to the (FIRS). “Regrettably, Companies come into Nigeria just to infringe on our tax laws by indulging in tax evasion. There is no doubt that broadcasting, telecommunications and the cable-satellite industries have changed the face of communication in Nigeria. However, when it comes to tax compliance, some companies are found wanting. “They do with impunity in Nigeria what they dare not try in their countries of origin,” Mr Nami said. According to the FIRS boss, Nigeria contributes 34% of total revenue for the Multi-Choice group. The next to Nigeria from intelligence gathering is Kenya with 11%, and Zambia is in 3rd place with 10%. The rest of Africa where they have a presence accounts for 45% of the group’s total revenue. “Information currently at the disposal of FIRS has revealed a tax liability for relevant years of assessment for ₦1,822,923,909,313.94 (One trillion, eight hundred and twenty-two billion, nine hundred and twenty-three million, nine hundred and nine thousand, three hundred and thirteen naira, ninety-four kobo only) and $342,531,206 (Three hundred and forty-two million, five hundred and thirty-one thousand, two hundred and six dollars only). “Under FIRS powers in Section 49 of the Companies Income Tax Act Cap C21 LFN 2004 as amended, Section 41 of the Value Added Tax Act Cap V1 LFN 2004 as amended and Section 31 of the FIRS (Establishment) Act No. 13 of 2007, all bankers to MCA & MCN in Nigeria are therefore appointed as Collecting Agents for the full recovery of the aforesaid tax debt. “In this regard, the affected banks are required to sweep balances in each of the above-mentioned entities’ accounts and pay the same in full or part settlement of the companies’ respective tax debts until FULL recovery. “This should be done before the execution of any transaction involving the companies or any of their subsidiaries. It is further requested that the Federal Inland Revenue Service be informed of any transactions before EXECUTION on the account, especially transfers of funds to any of their subsidiaries.” The chairman insisted that Nigeria must put a stop to all tax frauds that have been going on for too long. “All companies must be held accountable and made to pay their fair share of relevant taxes including back duty taxes owed especially VAT”. Vanguard

Fury, Wilder fight postponed. Agency Report

Tyson Fury’s heavyweight title defence against Deontay Wilder has been postponed after the champion and members of his camp contracted Covid-19, the World Boxing Council confirmed on Friday. In a brief post on Twitter, the WBC confirmed the July 24 bout had been postponed but did not say when the trilogy fight would be rescheduled. “Fury vs Wilder III will be postponed,” the WBC said. “We wish Tyson Fury’s team and him speedy recovery from COVID.” Multiple reports in the US and Britain have said Fury and several members of his team had tested positive for Covid-19 at their Las Vegas training base. ESPN reported that the fight at Las Vegas’s T-Mobile Arena had been tentatively rescheduled for October 9. The positive test was the latest twist to what has been a torturous year for Fury. The undefeated “Gypsy King” had been set to face a money-spinning heavyweight unification fight against fellow Briton Anthony Joshua. However, that fight was scuppered after an arbitrator ruled that Fury was legally obligated to face Wilder in a third fight. Fury handed Wilder a brutal beating in seven one-sided rounds in their second fight in February 2020. Their first fight, in December 2018, ended in a controversial split-decision draw in which Fury was knocked down twice. Neither Wilder, 35, nor Fury, has fought since their bout in Las Vegas last year. AFP

South-West govs propose six regions, demand LG autonomy, resource control by Leke Baiyewu

Governors in the South-West geopolitical zone have proposed conversion of the present six geopolitical zones into federating units, as part of the ongoing review of the 1999 Constitution by the National Assembly. The South West Governors’ Forum, in a document presented to members of the National Assembly from the geopolitical zone, also made other proposals to weaken central government, while allocating more powers to the federating units and states. Our correspondent obtained the document containing the proposals by the governors, which was presented to the South-West caucus of the National Assembly on Tuesday. The governors had met with the lawmakers in Abuja behind closed doors last week. The governors at the meeting were Rotimi Akeredolu (Ondo State), who is also the Chairman of the South West Governors’ Forum; Seyi Makinde (Oyo), Kayode Fayemi (Ekiti State), Gboyega Oyetola (Osun), Babajide Sanwo-Olu (Lagos) and Dapo Abiodun (Ogun). Afer the meeting, Akeredolu had said the South-West would be approaching the constitution amendment with a common front. He added that the meeting had set a committee made of up senators led by the caucus chairman (Opeyemi Bamidele) and House of Representatives caucus chairman (Femi Fakeye) and attorneys-generals of the South-West states. “The committee is to harmonise our position so that we can present it when necessary before the two Houses and at the end of the day, have a constitutional amendment and have our serious input. Thank you all,” he had said. The PUNCH reliably learnt on Friday that the joint Senate and House committee would fine tune the proposals and ensured that they were captured in the constitution review exercise. In the document titled, ‘Proposals for the Review of the Constitution of the Federal Republic of Nigeria 1999 (As Amended): Presentation by South-West Governors’ Forum’ and dated July 5, 2021, the governors sought amendment to Section 3(1) and (3) of the constitution. The present Section 3(1) reads, “There shall be 36 states in Nigeria, that is to say, Abia, Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Ekiti, Enugu, Gombe, Imo, Jigawa, Kaduna,Kano, Katsina, Kebbi, Kogi, Kwara, Lagos, Nasarawa, Niger, Ogun, Ondo, Osun, Oyo, Plateau, Rivers, Sokoto, Taraba, Yobe and Zamfara.” The governors added, “We propose that Section 3(1) be amended as a federation consisting of six geopolitical zones constituted from the states. The federating units or regions are divided into the following geopolitical zones: North-West Zone, North-Eastern Zone, Middle – Belt Zone, South-East Zone, South-South Zone, South-West Zone and the Federal Capital Territory. The forum added that “the geopolitical zones have been recognised and accepted by Nigeria’s political class.” It also said, “Section 3(6) be amended to provide for a number of local governments or such autonomous administrative units to be created by the respective federating units or states, the criteria of which shall include population, taxable capacity, ethno-religious or other cultural and social affinities.” Another major proposal in the presentation is an amendment to Section 7 of the constitution which is about local government. The governors asked that the section “include an additional (sub)section prohibiting the dissolution of elected local government councils.” “This will be in compliance with the Supreme Court decisions in ALGON v. Oyo State Government; AG Plateau State & Others v. Goyol & Others; Governor, Ekiti State v. Olubunmo & Others,” the forum added. Also, the South-West governors proposed that Section 8 be amended by deleting Subsections 5 and 6, thereby removing the powers to create state from the Federal Government. The proposal reads, “Section 8(5) and (6) should be expunged. Section 8 (1) and (2) provides for the procedures for creation of state while Section 8(3), (4), (5) and (6) provides for the procedure for creation of local governments. “However, Section 8(5) and (6) should be expunged to make local government creation the exclusive duty of the state government.” The governors also wanted the wordings of Section 14(4) changed. The present version reads, “The composition of the government of a state, a local government council, or any of the agencies of such government or council, and the conduct of the affairs of the government or council or such agencies shall be carried out in such manner as to recognise the diversity of the people within its area of authority and the need to promote a sense of belonging and loyalty among all the people of the federation.” The proposed version reads, “The composition of the government of the federation or any of its agencies and the conduct of its affairs shall be carried out in such a manner as to reflect the federal character of Nigeria and the need to promote national unity, fair representation of individuals and groups and also command national loyalty, thereby ensuring that there shall be no predominance of a particular gender and also to command national loyalty, thereby ensuring that there shall be no predominance of persons from a few ethnic or other sectional groups in that government or in any of its agencies.” If the proposed amendment to Section 15 eventually becomes law, Nigeria’s motto would be changed to ‘Unity and Faith, Equality, Peace and Progress.’ The forum also called for deletion of Section 29(4)(b), which confers adulthood status on a married under-18 woman. Explaining the proposal, the governors say, “Section 29(4)(a) and (b) contradicts each other. While (a) says ‘full age means the age of 18 years and above’, (b) says ‘any woman who is married shall be deemed to be full of age.’ This reinforces child marriage which negates the Convention on the Rights of the Child 1989 and the Child’s Rights Act 2003, which outlaws child marriage.” The governors also want the states to be in charge of mineral resources within their respective territories. Consequently, they have proposed an amendment to Section 44(3) that vests exploitation of mineral oils and natural gas in the Federal Government. PUNCH.

Four Guaranty Trust Bank Directors Retire As Group Forms New Board By Ukpe Philip

Guarantee Trust Bank Plc has completed its re-organization to a holding company, a process that started over a year ago. The new Holdco said on Wednesday that the new corporate name adopted is Guarantee Trust Holding Company Plc. As a holding company, the bank will be a subsidiary of the new structure and will lead to the delisting of the GTBank from the capital market and the listing of GT Holdco on the stock exchange. The company had on November 6 last year obtained an authorization from a Federal High Court sitting in Lagos. GTCO said following the reorganization, four of its directors have been retired, while new ones have been appointed. GTCO said, “Kindly be informed that as part of the restructuring process, the Board of GTCO was constituted and the Board of Guarantee Trust Bank Limited was reconstituted following the retirement of the following directors: Mrs. Osaretin Demurem (Chairman); Mr. Adebayo Adeola (Non-Executive Director); Mr. Demola Odeyemi (Executive Director); and Mr. Bolaji Lawal (Executive Director).” The retired board members have been replaced with Mr Ibrahim Hassan as Chairman, Mrs Miriam Olusanya as Managing Director, Mr Olabode Agusto as Non-Executive Director, Ms Imoni Akpofure and Mrs Victoria Adefola as Independent Non-Executive Directors, Mr Jide Okuntola as Deputy Managing Director and Mr Haruna Musa as Executive Director. The Group also constituted a board which made Mr Sola Oyinlola as Chairman of GTCO. The banks’s former CEO, Mr Segun Agbaje, will be the Group Chief Executive Officer, Mrs Cathy Echeozo as Non-Executive Director, Mr Suleiman Barau and Mrs Helen Bouygues as Independent Non-Executive Directors and Mr Adebanji Adeniyi as Executive Director. GTCO said the changes have been approved by the Central Bank of Nigeria. Agbaje who is the new CEO of GTCO said the holding company structure will allow the company to take advantage of new business opportunities in the financial sector. “Whilst we are evolving as an organization, we remain committed to our founding values which have endeared our brand to millions of people.”

GTB announces Miriam Olusanya as new MD BY TVCN

Guaranty Trust Bank has announced the appointment of Miriam Olusanya as Managing Director. This is according to a notice signed by the company’s secretary, Erhi Obebeduo, and sent to the Nigerian Exchange Group Limited (NGX). The bank also announced the successful completion of its re-organization into a Holding Company Structure, in a bid to strengthen its long-term competitiveness and growth prospects. As part of the conditions for the re-organization, the banking giant announced that a new operating company bearing the name ‘Guaranty Trust Holding Company Plc’ (GTCo) has been established. In addition, a new Board of Directors as well as changes to the Board of its banking subsidiary (GTBank) was also announced. According to the notice, the Board was reconstituted following the retirement of about four Directors. In light of this, the GTCo’s Board will comprise of the following personalities: Mr Sola Oyinlola (Chairman), Mr Segun Agbaje (Group CEO), Mrs Cathy Echeozo (Non-Executive Director), Mrs Helen Bouygues (Independent Non-Executive Director) and Mr Adebanji Adeniyi (Executive Director). The banking subsidiary (GTBank) Board will comprise of Mr Inrahim Hassan (Chairman), Mrs Miriam Olusanya (Managing Director), Mr Olabode Agusto (Non-Executive Director), Ms Imponi Akpofure (Independent Non-Executive Director), Mrs Victoria Adefala (Independent Non-Executive Director), Mr Jide Okuntola (Deputy Managing Director) and Mr Haruna Musa (Executive Director).

FIBA stops Nneka Ogwumike from representing Nigeria. Agency Report

Nneka Ogwumike’s petition to represent Nigeria at the 2020 Olympics was on Wednesday rejected by basketball governing body FIBA due to “substantial involvement” of more than 10 years with Team USA. Ogwumike, a 2016 WNBA Most Valuable Player, who played competitively for Team USA from 2009 to 2018, is seeking to explore all available options, including a possible application to the Court of Arbitration for Sport, according to ESPN. The Nigerian Basketball Federation filed an appeal to FIBA on behalf of Ogwumike and Elizabeth Williams, the Atlanta Dream center who was also denied because of previous involvement with Team USA. The federation wrote that Ogwumike and Williams were “two of the top players that would have made our team one of the strongest at the Games.” “We do tacitly believe there are undercurrents and motivation for such a decision which is repugnant to natural justice, equity and good conscience. It is also outrightly discriminatory because players of African descent are approved to play for other countries constantly but the reverse is not the case,” NBBF added. Generally, if players have competed for the United States in a FIBA-sanctioned event after having reached their 17th birthday, they are not allowed to play for another country in a FIBA event. However, according to FIBA’s regulations on player eligibility, the organisation’s secretary general may authorise a player to compete for the national team of his or her country of origin if this is in the interest of the growth of basketball in that country. One of FIBA’s pillars of emphasis currently is the growth of women’s basketball worldwide. The IOC rules only require an athlete to be nationalised by the country they’re competing for. They can compete for a different country three years after they competed for their previous country. Ogwumike last competed internationally for the United States three years ago in the 2018 World Cup. She had sought to play for Nigeria with her two sisters, Chiney and Erica, previously telling ESPN, “It’s something I know my family would be very proud of. I’m hoping it will contribute to the growth we’re experiencing for Africa in basketball.” Chiney, a former No.1 overall pick who now stars with her older sister for the Los Angeles Sparks, was approved to play for Nigeria as a naturalised player, a condition that could affect the rest of the Nigerian roster as only one player can have that status. She is also required to pay $5,000 Swiss Francs (approximately $5,468). Sources said Chiney is also expected to appeal FIBA’s ruling on her status. Erica was approved to play for Nigeria without any conditions, essentially giving the three Ogwumike sisters three different statuses by FIBA. The Ogwumikes’ parents, Peter and Ify, were both born in Nigeria and immigrated to the United States, where their daughters were born. The Ogwumike sisters have dual citizenship with the United States and Nigeria. They have been filming and developing a documentary on their experiences playing together for the Nigerian national team, sources said. In letters sent to Ogwumike and Williams, FIBA Secretary General Andreas Zagklis explained the rationale for denying their petitions because of “the substantial involvement of the player with the USA national team over more than ten years.” Nneka, 31, was a longtime member of the US senior national team, winning gold medals with the American squad in 2014 and 2018 at the FIBA Women’s Basketball World Cup. But she was left off the US roster for the Tokyo Games, which was announced June 21, surprising many and causing some controversy. She is the only MVP in WNBA history who has not made an Olympic squad, as she was also controversially left off in 2012 and 2016.

Tax credit: FEC awards N309.9bn road contracts to Dangote Stephen Angbulu

The Federal Executive Council on Wednesday approved the award of a contract to Dangote Industries for the construction of five roads totaling 274.9 km at the cost of N309.9bn to be advanced to the company as tax credit. Minister of Works and Housing, Babatunde Fashola, disclosed this while briefing State House correspondents after the Federal Executive Council meeting presided over by the President, Major General Muhammadu Buhari (retd.). Fashola explained that the road contract, which was the second approved for his ministry by the council, would be implemented on concrete and would be the largest of such projects in the country. He said, “The second memorandum presented by the Ministry of Works and Housing was for the construction or the reconstruction, as the case may be, of five road projects in favour of Messrs. Dangote Industries Limited, totalling 274.9 kilometres of federal roads, under the Federal Government Roads Infrastructure Tax Credit policy, which is one of our strategic partnerships with the private sector. “Those five roads totalling 274.9 km will cost N309,917,717,251.35 to be advanced by the Dangote Industries as tax credit.” He added that the roads include Bama to Banki in Borno State for N51.02bn running into 49.15km; Dikwa to Gamboru-Ngala, 49.58km, in Borno State for N55.5bn; and the Nnamdi Azikiwe Road, popularly known as Western Bypass in Kaduna, 21.48km, from Command Junction to Kawu, in the sum of N37.56bn. Others are the deep seaport access road sections 1 and 3 in Lagos State, through Epe to Shagamu Expressway, 54.24 km, that links Lagos and Ogun states, in the sum of N85.84bn; the Obele/Ilaro/Papalanto to Shagamu Road, 100km, in Ogun State, in the sum of N79.99bn. The minister said, “Council considered and approved this memorandum, to facilitate the construction of 274km of concrete roads. So, this will be the largest single award of concrete roads ever undertaken by the government of Nigeria in one award.” Fashola also explained that the award of the contract to Dangote Group was consistent with funding options. Speaking on the conditions surrounding the contract, he said, “First of all, the award is consistent with our multiple funding options, which includes engagement with the private sector. “Secondly, the tax credit initiative was in existence in the last administration before this government but was not utilised. So, this administration has revised it, expanded it, and has used it to construct roads like the Apapa Wharf Road, the Oworonsoki to Apapa, through Oshodi Road, by the same Dangote Group.” He said the list included the Obajana-Kabba Road (still the Dangote Group) and the Bodo-Bonny bridges and road, which council approved last week, through the NLNG. He added, “There was also interest by many other companies that are being reviewed. So, it’s not unique to Dangote. So, he’s the one who has applied and we’ve been in this process. So, this is the next batch of roads that they are taking up. “They invest their money and then instead of when their taxes come due for payment, they net it off. That’s the circumstance. This is not concessioning. This is a tax credit policy; don’t mix them.” PUNCH.