Twenty-one companies in the Tema metropolis have been short-listed for closure for owing the Value Added Tax (VAT) Service a total of 710,737.03 Ghana cedis. The companies that have not filed their VAT returns since last year ignored several notices issued to them by the Service to regularize their operations. As a last resort to retrieve the amount, the Enforcement and Debt Management (EDM) team of the Service accompanied by two police personnel on Friday embarked on a distress action in the metropolis. Mr. Henry Brandford Sam, leader of the team told the press that the exercise forms part of the Service’s efforts to achieve its target for the year, adding that, more defaulting companies would be served with the notice and subsequently close down. Mr. Sam explained that the ongoing nationwide exercise was in accordance with section 34 of the 1998 VAT Act 546 which empowers the Service Commissioner to levy assets of defaulters and disposing of them after 14 days if the companies failed to honour their obligations. He added that, paying part of the money does not exonerate the defaulters indicating that it was unfortunate that instead of filing the returns within the stipulated time, companies preferred to pay at their own convenience, contrary to the Act. Two companies, Trafix Catering Service and Greenwich Cold Stores Limited were closed down while Riepco Limited, a custom bounded warehouse issued a cheque to defray the cost and Atlas M&E Ghana Limited, an inland container depot was issued with an ultimatum to complete payment on Tuesday May 26 after paying 5,000 Ghana cedis. Trafix owes the Service 28,831.12 Ghana cedis, Greenwich Cold Stores 29,100.43 Ghana cedi, while Riepco and Atlas 31,499.82 and 40,730.61 Ghana cedis respectively. The Director of Trafix, Mr. G.B. Ahu who was infuriated by the exercise accused the Service of owing the company as according to him VAT over-charges the company. “I hold this action as improper, VAT has charged us more than they should take,” Mr. Ahu retorted adding that, “this is using our own resources to destroy indigenous companies.” He further said, “VAT Service knows that what they are doing is criminal since they are charging more than necessary, they do owe Trafix not the other way round.” The team leader, responding to the allegation said it was unfounded as the exercise was aimed at collecting what the company received on behalf of the country.Source: GNA