Accra Mall escapes shutdown over GH¢2.3m VAT default

Accra Mall escapes shutdown over GH¢2.3m VAT default
Source: Ghana| JoyBusiness
Date: 29-11-2017 Time: 05:11:56:pm

Accra Shopping Mall was nearly closed down by tax collectors after defaulting on Value Added Tax (VAT) totalling about GH¢2.3 million.

The Debt Management and Compliant Enforcement Unit of the Ghana Revenue Authority (GRA) approached the Management of the Mall on Wednesday as part of a tax collection program.

Joy Business is learning that although occupants of the Mall have all paid their taxes, Management, on the other hand, failed to pay its Value Added Tax (VAT) for two years, from September 2013 to October 2015. 

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After a closed-door engagement between officials of the GRA and management of Accra Mall, a cheque was issued to defray all the debts.

The Chief Revenue Officer, Debt Management and Compliance of the GRA, Wisdom Hetor is confident the exercise will improve voluntary tax compliance.

He said, “The audit covers between 2013 and 2015 but the demand notice was served on the 11th of September 2017 and the final demand notice was served on the 26th of October, 2017.” 

“So before this exercise, we have had several meetings with them to make sure that we collect the money from them but they always give varied excuses so we have no other option than to come today to execute the mandate,”  he stated in an interview with the media.

The tax collection taskforce is expected to clamp down on 20 other companies who have defaulted on the payment of their taxes in the coming days.

The move by the Debt Management and Compliant Enforcement Unit of the Ghana Revenue Authority (GRA) forms part of efforts to improve upon tax compliance in the country.

Meanwhile, the Ghana Revenue Authority (GRA) has launched a comprehensive national tax campaign to encourage more Ghanaians to honour their tax obligations to enable the government to realize its domestic revenue targets, increase social intervention policies and accelerate development across the country.

The aggressive campaign, which will include stakeholder engagements, dawn broadcasts, social media activities, consistent media announcements, community outreach programmes, compliance and enforcement activities, among other things, is also to help increase the number of people paying taxes from about 16 percent of the population to be at par with the sub-regional average of 20 percent.

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