The Ghana Revenue Authority (GRA) has given Electrochem Ghana Limited, a subsidiary of the McDan Group of Companies, a seven-day ultimatum to settle an outstanding tax liability of GH¢8.6 million or face further enforcement action.

The directive follows what the GRA describes as several unsuccessful engagements with the salt mining company over efforts to recover the outstanding amount.

On Wednesday, July 8, officers from the Compliance Unit of the GRA visited the company’s premises at Ada and sealed off its administration block as part of measures to compel payment.

Speaking to the media after the exercise, the Accra Area Enforcement Manager of the GRA, Joseph Annan, said the Authority would be forced to restrict access to the entire mining facility if the company fails to honour its tax obligations within the seven days.

According to him, the outstanding liability dates back to 2021, with several demand notices and reminders issued to the company over the years.

"We have decided to take this action because the initial debt was about GH¢8.8 million, including interest accumulated over the period. However, upon our arrival, we realised what goes on here, and after some presentation from the managers on site, we were given a cheque of GH¢200,000, which, although it is woefully inadequate, we had to accept," he said.

Mr Annan explained that the GRA decided against completely shutting down operations to allow the company to continue working and raise funds to settle the outstanding amount.

"We therefore decided to seal the administration block and give them the opportunity to work in order to raise the remaining balance within the next seven days.

"I can tell you that if they fail to pay after the seven days, then our next visit here will not be friendly at all. We know it is an indigenous business, and we have to protect them, but the state also needs the funds to carry out many projects," he added.

Officials of Electrochem at the site appealed to the GRA enforcement team to exercise restraint, assuring them that the company was working to mobilise funds to settle the outstanding tax liability.

Wednesday’s operation forms part of intensified enforcement measures by the GRA to improve revenue mobilisation as it works towards meeting its collection target for the year.