Business News of 2014-07-04

Africa Automobile Company accused of evading tax

The Ghana Revenue Authority (GRA) has slammed the African Automobile Company (AAC), for refusing to disclose revenue to the Authority for taxation, leading to the loss of revenue to the State.

Financial statements about business transactions ought to be declared for the purpose of taxation, but the Managing Director of African Automobiles is yet to pay tax on GH¢ 8.2 million Judgment Debt payment received by the company. Mr Edward Gyamerah, GRA Commissioner told the Commission at its sitting in Accra on Thursday.

Mr Gyamerah informed the Judgment Debt Commission that the African Automobile Company “had refused to disclose their revenue to enable GRA tax them.” He said “any revenue that a person receives must be disclosed to the Commissioner, to see if it is taxable or not, but this was not done in the case of the company.”

He said GRA would follow due process to compel the automobile company to honour its tax obligation. Mr Kenneth Dzirasah, Chairman of the Ghana Refugee Board, also appeared before the Commission about a land government had acquired for refugees.

The case involving Warrant Officer Class One Adjei Boadi, now sick, sued the government at the High Court for failing to pay for land compensation because the Ghana Refugee Board disagreed with the valuation report on the Ekwarmkrom lands in Buduburam in the Central Region, delaying the compensation payment.

Mr Dzirasah said the refugee board never obstructed in the payment of the compensation to the complainant, but Mr Justice Yaw Apau, the Sole Commissioner, said he would be glad if the board could meet the Chief State Attorney to resolve the issue, adding, “help the poor man at least he served his country.”

Mr Emmanuel Tetteh Martey, Acting Corporate Estate Manager of the Volta River Authority (VRA), brought claims to the Commission about payments that are yet to be made to the people of Keta-Krachi and surrounding areas affected by the flood.

He said the VRA did not have a full summary of records about the issue, and pleaded with the Commission for time to re-appear on the July 17, hoping the records would be ready by then.