GRA clamps down on tax defaulters

The Ghana Revenue Authority (GRA) on Wednesday sealed the premises of some businesses in Accra that had failed to honour their tax obligations.

Businesses affected by the clamp down on tax defaulters included the Adesko Hotel at Dzorwulu and the New Haven Hotel at Kokomlemle.

Similar exercises are said to have gone on in various suburbs of the national capital.

Significance

The Coordinator of the Special Revenue Mobilisation Task Force of the GRA, Mr Henry Sam, told journalists that the exercise was necessitated by the failure of some companies to issue Value Added Tax (VAT) invoices to their patrons and rather issued personal invoices or engaged in selective issuance.

He said investigations carried out by the National Security and the Bureau of National Investigations (BNI), through test purchase of items subject to VAT, revealed that over 40 businesses failed to comply with the issuance of VAT invoices to customers who patronised their goods and services.

Compliance

He explained that the exercise, a joint operation between officials of the GRA and law enforcement agencies, was to ensure that business establishments complied with the tax laws of the country.

The coordinator said as part of the exercise, the task force was also checking the records of various establishments to ascertain their tax status and determine their tax liability arising out of infractions of the tax laws.

He stated that out of the 42 businesses the GRA visited, only three of them issued VAT invoices to their customers.

 “We are taking the records of the businesses and will submit them to the Tax Audit to establish tax shortfalls,” he added.

Charges

Mr Sam indicated that culprits would be charged for their failure to issue VAT invoices, in line with Section 58 of the VAT Act 2013, Act 870.

The act stipulates: “A person who fails to issue a tax invoice or sales receipt as required under Section 41 for taxable goods supplied or taxable services rendered commits an offence and is liable on summary conviction to a fine of not less than one hundred penalty units or to a term of imprisonment of not more than six months or to both.”

He urged customers who patronised taxable goods and services to always insist on their VAT invoices and report any infractions to the nearest GRA office for swift action to be taken.