GRA shuts down six firms owing GH¢1.2m in Western Region
The Value Added Tax (VAT) Division of the Ghana Revenue Authority (GRA) has sealed off the premises of six companies, which owe it GH¢1.2 million in revenue in the Western Region.
The defaulting companies are in commerce, industry and hospitality and have through their operations collected the VAT tax component of the services provided by its clients but failed to release the money to the state.
Speaking to the media before embarking on the exercise to retrieve the monies owed it, the Assistant Commissioner in charge of the Western Region, Mr Abeiku Cudjoe, said his outfit had sent several notices to the defaulting companies.
He said it was important to note that monies paid as tax of services received from the defaulting companies did not form part of their stated capital and must be released to the GRA.
“We at the VAT Service are not in the business of collapsing the business of our clients who collect the revenue for us, but it was just right that when these monies are collected, the companies release it to us,” he said.
Mr Cudjoe said before embarking on the distress action, the VAT Service sent a 14-day demand notice to the companies involved and another seven-day reminder to the companies.
“We have exhausted all these avenues made available to the people and they still did not heed to our call for them to pay the state what is due it, therefore we are left with no option than to close their premises,” he said.
He said other challenges they were facing currently included the poor culture of filling returns among its clients or traders, “but I can say that we have moved into full gear to ensure every cent owed the state was paid.”
The assistant commissioner said, even though the target set for its out fit in the region last year was exceeded by 28 per cent, payment by the defaulters would have positioned the regional office much better.
He said the other problem the VAT Service had realised was the that, many customers who transacted business with these companies also failed to help the system by ensuring that they collected tax receipts after every transaction.
“If the consumers are apathetic and failed to collect or demand receipt from the service providers, they are not helping the system. The service provider had tax element in the amount you paid, therefore, failure to collect tax receipt would enrich the service provider because we will not be able to detect that,” he said.
Mr Cudjoe reminded customers that, the government needed the money for the roads, hospitals, schools and other social infrastructure; therefore, they had to help support the course.
Source: Daily Graphic