GRA clampdown on 12 businesses in East Legon for VAT infractions
By Christabel Oboshie ANNAN, Accra
The Ghana Revenue Authority (GRA), has reiterated that the non-issuance of Valued Added Tax (VAT) invoice is a criminal offence and can lead to prosecution.
The Authority warned that tax defaulters can be charged under sections 78 and 82 of the Revenue Administration Act, 2016 (Act 915) that focus on failure to comply with a tax law and impeding tax administration, respectively.
In view if this, the Authority continued its clamp-down on non-compliant Value Added Tax (VAT) businesses.
The exercise is part of efforts by GRA to promote voluntary tax compliance and ensure compliance of tax among Small, and Medium-sized businesses.
In that vein, two managers were arrested yesterday and 10 business owners were invited to the headquarters of the Customs Office.
The Managers were taken to the headquarters of the Customs Office for their statements before being handed over to the Criminal Investigation Department of the Ghana Police Service.
The GRA visited 12 businesses at East-Legon during the exercise.
They are Han Sen Decor City, Boost Electronics, De’lish Restaurant, Heiress & Flair Boutique, Relay express laundry/dry cleaning services, Gifred Shopping Center, Juliejoan – Ashfoam, House of fabrics, Dong-Chebe, About Office Ghana Limited, Fresh angels and Milan Star Fabrics.
These businesses were charged for non-issuance and selective tax invoices, a critical requirement under tax regulations.
The Head of Accra Central Enforcement Unit of the GRA, Assistant Commissioner Joseph Annan, during the enforcement exercise said the operations will continue till full compliance is achieved.
He noted that section 41 of the VAT Act stipulates that businesses issue VAT invoices at all times, and failure to do so contravenes the law.
He stated that his outfit will conduct pre-emptive assessments with full audit and take legal actions to prosecute businesses found culpable.
Mr. Annan added that items such as VAT invoices, computer system units, waybills, laptops and business documents were retrieved from the various businesses to assist them to conduct a full-scale investigation to ascertain the revenue loss.
He said that although the businesses were registered, they did not issue or did selective issuance of the VAT invoice.
He indicated that so far, none of the business owners arrested, since the beginning of the exercise, had faced prosecution.
“You know it takes time to build a docket. Some of them are asking for leniency but that decision can only be taken by the top managers of the Authority,” he explained.
The GRA has set a revenue target of GH¢106 billion, of which the Customs Division is expected to collect some GH¢28.5 billion in 2023.
It has listed some 93 businesses across the capital as targets of enforcement and compliance this year.
It reiterated that it will continue to implement a number of tax policy initiatives to boost domestic revenue mobilisation.
Among such measures are the Electronic VAT, Electronic Tax Clearance Certificate, upfront payment on imported goods, excise tax stamp and resumption of vehicle income tax payment, among others.
Other initiatives to shore-up and improve revenue mobilisation include the ongoing e-VAT invigilation exercise, and test purchase and mystery shopping exercises by the Authority.
