Tax department sends Bibica $130,434 fine and tax arrears

August 27, 2019 | 13:10
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Bibica Corporation, one of the leading confectionery businesses in Vietnam, will have to pay VND3 billion ($130,434) in fines and tax arrears, VND2.1 billion ($91,304) of which is value-added tax arrears from 2016-2017, according to information published on its website.
tax department sends bibica 130434 fine and tax arrears
Bibica was slammed with $130,434 in fines and tax arrears

The Hanoi Department of Taxation awarded Bibica a fine of VND429.4 million ($18,669) for its false tax declaration. Besides, Bibica will have to pay VND2.1 billion ($91,300) in tax arrears, VND1.18 billion ($51,300) of which is left from 2016 and the remaining VND964 million ($41,900) for 2017.

In addition, the corporation also paid a VND509 million ($22,130) charge for late filing (this charge was calculated until January 14, 2019).

On the stock market, Bibica shares (BBC) have been flying low in recent years. Most recently, BBC closed at VND66,800, down 16 per cent on-year.

Bibica's business results have seen great progress in recent years. In 2018, its revenue reached nearly VND1.4 trillion ($60.8 million), an increase of 10.5 per cent on-year. Post-tax profit touched over VND110 billion ($4.78 million), up 13.26 per cent on-year, exceeding 11.7 per cent of the profit target assigned for the whole year.

In July, Vietnamese agriculture and food company PAN Group JSC (PAN) offered to buy more than 7.7 million shares of Bibica.

The shares were equivalent to 49.93 per cent of Bibica's outstanding voting shares. The expected bidding price was VND68,500 per share.

If the deal was secured at this price, PAN Group was expected to spend about VND527 billion ($22.91 million) on the purchase. PAN aims to increase its long-term ownership in Bibica through the deal. The result of the deal was expected to be disclosed in the next two months since the group issued the offer.

Bibica has two major shareholders. Lotte Confectionery (44.03 per cent of the charter capital) and PAN Food (a subsidiary of The PAN Group, 50.07 per cent).

By Ha Vy

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