The Ghana
Revenue Authority (GRA) has been impressing on businesses in the Ashanti region
to honour their tax obligations, especially with the Value Added Tax.
The distress
action is to retrieve accruing revenue from defaulting business establishments.
About five
cargo trucks evading tax have been impounded, some businesses shut and managers
arrested in Kumasi within the fie-day exercise.
Officials
at the GRA’s Debt Management and Compliance Enforcement Unit have observed low
compliance of VAT laws and regulations among both small and big institutions.
The
on-going distress action targets institutions that have either refused to file
VAT returns or defaulted in payment of other taxes.
“As when
they are arrested, we make them to pay the tax; this vehicle that we’ve
arrested they quickly went and issue the VAT invoice and the tax element would be
accounted for,” said Wisdom Kofi Xetor, an enforcement officer.
Total revenue
retrieved over the period would not be disclosed, but in one instance, an
arrested cargo truck carried a single invoice with a VAT component in excess of
Gh₵5,000.
Mr.
Xetor says significant impact has been achieved, stating that the distress
action puts businesses on the alert to honour their tax obligation.
The GRA expect
institutions to voluntarily pay their taxes to avoid confrontations with tax
agents.
Story by
Kofi Adu Domfeh
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