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Value created for government and regulators

ZAR4.3bn VAT and sales tax collected
ZAR1.9bn employee taxes paid and collected
ZAR0.3bn paid in customs, excise and other operatingtaxes
ZAR0.9bn withholding taxes paid and collected
ZAR3.6bn paid in corporate income taxes
ZAR0.2bn paid in regulatory fees
(1) The total tax contribution amount reflects all cash taxes paid and collected by the group and includes regulatory fees. The tax paid amount is the actual cash tax incurred and paid by the group in FY21 and includes corporate income tax, property taxes, social security contributions, etc. The tax collected amount reflects taxes not incurred by the group, but taxes that were collected by the group on behalf of revenue authorities (e.g. PAYE and VAT).

Delivering value to governments

Governments rely heavily on revenue arising from tax contributions made by corporate taxpayers. Our contribution to their revenue is through collecting and paying indirect taxes on their behalf, and by paying a substantial amount through direct corporate income and other taxes.

Governments have a broad social mandate to fulfil, which includes social upliftment, access to services and creating and enforcing laws that protect society's various constituencies. We understand the challenges they face and always seek to play our part in supporting the development and sustainability of the countries and industries in which we operate. We comply with all our statutory obligations and build good, honest and open working relationships with tax authorities founded on trust.

We have robust tax risk management measures in place (as documented in our group tax policy) and place high regard on our tax and corporate reputation. We do not enter into transactions that detract from this reputation. We endeavour to ensure our tax objectives do not conflict with our corporate social responsibility objectives.

Delivering value to our regulators

It is important for the regulators across our footprint to try to keep pace with a continuously and rapidly evolving environment and balance this with the need for continuity and stability in their regulatory frameworks. These frameworks need to support a level and competitive playing field without prejudicing certain constituencies in favour of others.

Although the group operates in a highly regulated environment, which often results in complex and onerous operating conditions, we remain supportive of balanced, evidence-based and consistently applied regulations that ultimately protect consumers. As such, we remain committed to working with our regulators to ensure appropriate and fair outcomes of ongoing licensing processes and regulatory reviews. In FY21, we paid ZAR203m in regulatory fees across our footprint (FY20: ZAR212m).

Remaining compliant with all laws and regulations is of utmost importance to us. Our related corporate policies are available on our website

Further, we aim to employ best practice when it comes to governance (details are available in our governance report on Our approach to governance. Finally, we uphold and protect the rights of our employees, customers and partners and limit any potential negative impacts on the environment and broader society.

Critical issues for our regulators

How we address them

How these were addressed


Independent Communications Authority of South Africa's (ICASA) inquiry into South Africa's subscription TV broadcasting market, its proposed changes to regulations on sport of national interest, must-carry and ownership and controlNot only are these processes important to the regulator in our largest market, they are also important to our shareholders, employees, customers, suppliers and the public. These stakeholders would be impacted by changes in these critical regulations.

How these were addressed

On ICASA's subscription TV broadcasting market inquiry, we remain supportive of forward-looking and evidence-based regulations, applied consistently to all video entertainment market participants. We do not believe the draft findings meet these criteria. As such, we have constructively engaged with the regulator and participated in the second iteration of public hearings. We remain optimistic that the outcome of the regulations will be supportive of the video entertainment industry as a whole, including content providers and customers.

How these were addressed


Competition complaintsThe Competition Commission is investigating whether certain of our contractual arrangements, including our recent agreements with SVOD providers, constitute a merger or negatively impact competition.

How these were addressed

Complaints on the deals with Netflix and Amazon Prime Video are being dealt with and we are cooperating with the Competition Commission's investigation. We believe that these non-exclusive agreements fully comply with competition law and are not unique given similar arrangements in other markets.

How these were addressed


Government's draft white paper on audio and audiovisual content services policy frameworkThe long-awaited draft white paper policy on audiovisual and digital content services was published, paving the way for bringing OTT services into the regulatory fold.

How these were addressed

We welcomed the publication of the draft white paper, much of which focuses on the licensing framework for content services in the new environment. MultiChoice is in broad agreement with the draft white paper's view that South Africa's current licensing framework must be updated and that new audiovisual services should be brought into the licensing and regulatory framework.

How these were addressed


Proposed amendments to the Nigerian Broadcasting Code

How these were addressed

There are ongoing disputes as to the legality of purported amendments to the Nigerian Broadcasting Code. These amendments include provisions that impact exclusivity. MultiChoice has constructively engaged with the board of the regulator and will continue to engage all relevant stakeholders until such time as the matter is resolved.

Key focus areasgoing forward

In terms of our approach to tax:

  • We will continue complying with tax laws and regulations, and will collect and/or pay the correct and due amount of tax to the governments in our markets.
  • We will continue building relationships of trust with governments and tax authorities. We will participate in public processes to discuss and provide input on formulating tax policy. We will proactively work with industry bodies, such as the Africa Industry Tax Association, and government associations, including the Africa Tax Administration Forum on tax policy, tax compliance and tax administration issues.

In terms of our regulatory approach, the regulatory landscape particularly in South Africa is characterised by constant change and posed challenges for our operations during FY21. Business risks are generally mitigated through actively participating in public consultations conducted by the relevant regulators. However, in some territories consultation is not always enough, which remains a concern, and further engagements with regulators and policy makers are often necessary to clarify the nature and scope of application of intended policy and regulation. Looking ahead:

  • We will ensure ongoing compliance with the applicable regulations and best practices across the jurisdictions where we operate through consistent monitoring and evaluation of compliance levels.
  • We will participate in reviewing existing legislation and regulations, or in processes where regulators intend to potentially introduce new regulations which may impact our business and industry. The introduction of new legislation and/or regulatory obligations (including laws of general application addressing consumer protection and data protection), tariff control in some territories, and sector-specific regulations are key areas of ongoing engagement with regulators.
  • We will renew any requisite licences as necessary.