Business News of 2014-05-07

Top Industries hurled to court for alleged tax evasion

The state has initiated prosecution of Top Industries Company Limited and another manufacturing company for allegedly evading tax amounting to Ghc¢93,978.62.

Management of Top industries has been accused of abusing the company's free zone status by importing chemicals to use at their factories but were later sold to another company, Excellence Company Limited.

Excellence Company Limited has also been charged for their role in the alleged tax evasion offence against the state.

"What we found is that Top Industries is using its presence in the free zones area as a conduit to distribute alcohol without paying the required duties," Mr. Clement Apaak, who led a government taskforce to uncover the the alleged offence, told Myjoyonline.com last month.

The Special Operations Unit at the Presidency last month impounded 560 drums of chemicals said to have been imported by Top Industries but were later sold to a third party, against the dictates of the Free Trade Zones Act (Act 504).

Ghana in 1995 introduced the Free Trade Zones Act (Act 504) for the promotion of economic development and also to encourage the development of external trade.

Such zones, which are generally administered by Customs authorities, provide relief from import duties and taxes for goods that are held within their boundaries.

The matter will heard at the Cocoa Affairs Court (Circuit Court six) at 9am Wednesday May 7, 2014.

Incorporated in 1975, Top Industries is one of Ghana's foremost manufacturers of plastic products. The company currently has more than 1000 employees.