The Tax Appeal Tribunal has struck out the appeal instituted by the South African Company, Multichoice Africa Holdings for lack of diligent prosecution and ordered It to pay up the Federal Inland Revenue Services (FIRS) $342M tax assessment.
The tribunal while delivering its judgment on the appeal filed by the company upheld the preliminary objection of the FIRS against the appeal of Multichoice Africa Holdings.
The Tribunal stated that the South African company did not comply with Order 3 Rule 6 of the Tax Appeal Tribunal (Procedure) Rules, 2021, which requires that an appellant is to deposit half of the assessed amount it is disputing before it can be heard on appeal.
In addition to depositing the sum, the appellant is required to file along with its appeal an affidavit verifying the payment which the company also failed to comply with.
FIRS had served a notice of unpaid VAT on Multichoice Africa Holdings but the company vehemently challenged the assessment and filed an appeal at the tribunal.