Posted by Amarachi on Thu 02nd Nov, 2023 - tori.ng
The FIRS asked the company to reconcile with the government or pay N198.7 billion arising from non-compliance with income tax laws and VAT returns remittance.
The Federal Inland Revenue Service (FIRS) has issued a seven-day ultimatum to BUA Industries Limited to remit and also produce certain tax documents.
The development is coming a few weeks after BUA Cement PLC made headlines when it announced the reduction of the price of its cement to N3,500 per bag from about N5,000.
The company had announced that the new price regime would take effect from Monday, October 2, 2023.
In a new twist, however, the FIRS has asked the company to reconcile with the government or pay N198.7 billion arising from non-compliance with income tax laws and VAT returns remittance.
A letter addressed to the Managing Director of BUA Industries Limited with reference number BBMSTO/RPP/22380531-0001 from Bar Beach Micro and Small Tax Office said the failure of the company to provide the documents requested would force the service to apply the provisions of Section 65 (1) of CITA and Section 18 of the VATA to compute tax attached.
The letter titled: “BUA Industries Limited Non-Compliance To Income Tax Laws And Vat Returns Remittance,” as obtained by journalists on Thursday, stated that “after the expiration of the seven-day ultimatum, the service will translate the tax computation into tax liability and raise as computed and attached assessment without further recourse to you.”
“We refer to our non-compliance letters that were dispatched and duly acknowledged by the company on 23 March 2023 (1 letter) 9 May 2023 (2 letter), 29 August 2023 (3 letter) and the minute of reconciliation meeting held on 30 August 2023.
“Kindly note that your failure to provide the documents requested have left the service with no other option than to apply the provisions of Section 65 (1) of CITA and Section 18 of the VATA to compute Tax as per attached.
“You are hereby given 7 days to respond if you disagree with our position, otherwise the service will translate the tax computation into tax liability and raise as computed and attached assessment without further recourse to you.” SaharaReporters quoted the letter signed by Officer II Tax, Khalid A. B., and Senior Manager Tax, Onwunali, I. C.