Public Information by GRA on the Issue of MBG Ltd and Holman Brothers, Ghana Ltd

Public Information by GRA on the Issue of MBG Ltd and Holman Brothers, Ghana Ltd
Source: Ghana |
Date: 26-04-2017 Time: 03:04:00:pm
Ibrahim Mahama owns the two companies
  1. Introduction

The Ghana Revenue Authority (GRA) wishes to clarify its role in the on-going issue regarding the importation of various vehicles and equipment by two corporate bodies, namely MBG Ltd. and Holman Brothers Ghana Ltd that are owned by Mr. Ibrahim Mahama.

  1. MBG Ltd.

In December 2015 MBG Ltd had a tax liability of GHC13,150,761.20 to GRA as duties payable on vehicles and equipment that had been imported by MBG Ltd. 

  1. Holman Brothers, Ghana Ltd.

In December 2015 Holman Brothers, Ghana Ltd. had a tax liability of GH3,788,873.84 payable to GRA as duties on vehicles and equipment that had been imported by Holman Brothers, Ghana Ltd.

To effect payment of duties and interest due on the said vehicles and equipment, MBG Ltd and Holman Brothers, Ghana Ltd. each issued 23 separate cheques to cover re-scheduled duty payment to be drawn monthly over a 12 month period.

  1. Follow-up Action by GRA

Following the dishonouring of the first of 46 cheques, GRA had meetings with the two entities to discuss payment terms.

The GRA agreed to a rescheduling arrangement with the two entities by which MBG Ltd. will pay GHC800,000 monthly, while Holman Brothers Ghana Ltd. will pay GHC192,000 monthly up to December 2017 to cover the entire amount which includes 25 percent interest rate and 25 percent penalty.

As at now the two companies have settled GHC4,544,594.47 and GHC1,985,547.71 in favour of MBG Ltd. and Holman Brothers (Gh) Ltd respectively, leaving outstanding balances inclusive of interest and penalties of GHC10,216,258.87 and GHC2,178,544.61 totalling GHC12,394,803.08. They have, however, not fully honoured the first two months instalment payment.

For this breach of the terms of the rescheduling arrangement, the GRA has moved to serve notice to the two companies to pay all the total outstanding debt of GHC12,394,803.08 that is owed including interest and penalty on the said indebtedness, within 2 weeks from Wednesday, 26th April 2017.

Thereafter, the GRA will initiate all necessary controls including detention, seizure and finally public auction of the goods after the statutory period to defray the loss of revenue.

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