FG Gives BUA Deadline To Submit Tax Documents Days After Reducing Cement Price

The Nigerian Government has through the Federal Inland Revenue Service (FIRS) served BUA Industries Limited a seven day ultimatum 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 ₦3,500 per bag from about ₦5,000.

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.

Naija News learnt that the said tax liability is for 2022.

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., to have read.

BUA Chairman, Rabiu Visits Tinubu In Aso Rock

Meanwhile, the Chairman of the BUA Group, Abdul Samad Rabiu, had met with President Bola Tinubu at the Presidential Villa in Abuja last Tuesday.

Speaking with State House correspondents after the meeting, Rabiu said he came to congratulate President Tinubu on his recent victory at the Supreme Court.

The businessman assured President Tinubu of the support of the business community in Nigeria, adding that he wants to see Nigeria being stable and prosperous.

Rabiu said the President, although making difficult decisions, has made the right ones because the way the country had been running up until then was unsustainable.

He said: “We need to support the President to ensure he delivers. As a Nigerian and a business owner, I want to see a Nigeria that is stable and a country that is prosperous.

“Nigeria is the only country we have, and we must all come together to support one another to get the prosperity we so much desire.”

Rabiu also urged Nigerians in the business community and the public to be a little more patient with Tinubu’s administration while it attempts to stabilise the foreign exchange market.