Rwanda Revenue Authority (RRA) has fined the National University of Rwanda (NUR) Rwf 6 billion ($10 million) over non-tax compliance, The New Times has reliably learnt.The fine, which the institution is disputing, was computed against billions of unpaid taxes accumulated over a period of three years. Although authorities at both the university and RRA confirmed the penalty, they were cagey on details, particularly the formula used to compute the fine and the amount of outstanding taxes.The University’s Vice-Rector in charge of Administration and Finance, Dr Desire Ndushabandi, said the tax arrears had accumulated "over the past years.”"When I was appointed to this post in 2011, RRA requested the university to pay Rwf4bn. But as we were appealing against the penalty, we received another letter demanding Rwf6bn,” Dr Ndushabandi told The New Times Monday."We have been surprised by that amount,” he added. The demand note was sent to the University last Friday. "We have written back telling them that we do not accept those fines. They are exaggerated,” Ndushabandi said."They will eventually fine the university but it is not as high as they have demanded. We are waiting to discuss the issue with them. We have called them here to cross-check our books. We are sure the bill will go down,” he said.The Commissioner for Domestic taxes at Rwanda Revenue Authority, Celestin Bumbakare, said the University had the right to appeal against the decision."It is everyone’s right to appeal whenever they think they were fined excessively or that they did not deserve to be penalised,” Bumbakare told The New Times by phone, adding that a team of auditors from RRA was already at the university. When asked about the method used to come up with that amount, he did not divulge the details saying that tax payers’ documents are very confidential."I cannot explain in the media the formula used to calculate the amount because the tax payers’ files are treated in a very confidential manner according to the law governing tax payers in the country,” he added.Bumbakare emphasised that if NUR is not acquainted with the outstanding bill, they should make an appeal by writing to the Commissioner General showing the evidence that the amount is not right.He stated that all the institutions pay taxes but the non-tax compliance issue arise when RRA audits them and unearths miscalculations in tax payments."We have self assessment and we do it according to the law. During the audit that is when we establish whether the institution has complied with all tax payment regulations or not. This time we found out miscalculations in NUR payments,” he said.Bumbakare says that, normally, taxes imposed on public institutions include Pay As You Earn for employees and withholding tax on services rendered to institutions.According to him, at the moment, there is no other public institution with the same problem as the country’s oldest university.