Attempted Tax Evasion Exposed

A supermarket operator who used the name of Finance Minister Hon. Osafo Maafo to attempt to evade tax payment has been exposed.

While the man, Mr. Baffour Awuah, bragged that as a close relation to the minister, even if he is sent to court he would come back a free man, Mr. Osafo Maafo's reaction was that, even if he was a relation of the man in question, that would have got nothing to do with abiding by the laws of the country and as such if he is found guilty, he has to face the full rigours of the law.

The minister added that he does not know the man and if his shop does not comply with the law, it is a different issue and that the necessary action should be taken against him.

On July 31, this year, two tax officials of a special task force, Mrs. Joyce Boateng and Richard Addison, both revenue officers, disguised themselves as ordinary citizens on a shopping spree and entered Sonnidom Company Limited at Kingsby Junction on the Achimota-Nsawam road in Accra.

On reaching the the shop, they bought some rice from the fast food joint and fruit juice from the supermarket. After paying for the items, they were given an official receipt but they refused it, insisting on a VAT invoice, since the company is registered under the service.

The Managing Director, on hearing of the exchange of words between the officials of VAT and his employees, called the officials to his office and told them that he had a directive from their head office to use an official receipt instead.

Frustrated by his inability to persuade the tax men, he told them they could take the case to court and, being a top NPP man, he would be freed, adding that the finance minister is even his friend.

Mr. Awuah also challenged the head of the task force, Mrs. Dina Abbey, a principal revenue officer, to tell him how many businesses she had been able to establish, the team added.

The special task force started work on July 22, this year on a directive from the Ministry of Finance to check if registered traders were using their VAT invoices as expected of them.

All attempts to contact the man proved futile, but other workers who were at the scene when the incident happened said the MD did not make any statement of that sort.

They however, admitted that VAT has not given Sonnidom the mandate to use their own official receipt but because of insufficient VAT receipts, they use their official receipt for petty items bought from their shop and issue the VAT receipts for major or many items bought.

When this reporter contacted officials of VAT, they said when accredited VAT traders do not issue VAT invoices, the country stands to lose since they would not account for what they have not issued out, adding that issuing out of VAT invoices brings profit to the nation.

Meanwhile, the case has been reported to Mr. Francis Sapati, the deputy head of the local VAT office at the North Industrial Area, the cop told Chronicle.