Palaver cited for tax evasion

A mouth-piece of the former ruling government of the National Democratic Congress (NDC), the Ghana Palaver, has been cited for evading tax over a period spanning three years.

At a time the Rawlings regime was dragging business people of all shades to the Serious Fraud Office (SFO) and other allied agencies for alleged economic crimes, the NDC government deliberately failed to ensure that its own paper sets standards in probity, accountability and credibility as preached by the party's leadership.

The Chronicle gathered that, in 1998, Ghana Palaver's tax obligations to the Internal Revenue Service (IRS) based on official assessment was ?9.5 million. When the Ghana Palaver failed to pay up, the IRS slapped a penalty of ?1.4 million on the paper pushing their tax obligation for the year to ?11 million.

In 1999, the Ghana Palaver was assessed for ?9 million but failed again to pay, compelling the IRS to penalize the paper with another ?1.3 million slap.

The Ghana Palaver persisted in its anti-social and unlawful act. For the year 2000 when they were assessed at ?13.5 million, they failed and received ?2 million which they again ignored till 2001 when their assessment rose to ?15 million plus a ?3.7 million penalty.

The usual pig-headedness of the NDC leadership and party faithfuls came into play as the Ghana Palaver, fired on by the notion that they were untouchable as long as the party was in power, in spite of the penalties imposed on them on a year by year basis, has still failed to pay up.

Officials of the Auditor General's Department interviewed by the Chronicle confirmed the story.

They disclosed to the Chronicle that they stumbled on Palaver's tax evasion when they were investigating the circumstances surrounding that paper's illegal drawing of the Common Fund to the tune of ?52 million.

They said they wanted to find out how much tax The Ghana Palaver had paid if they claimed they circulated so much. That was when they discovered that since 1998, the Palaver had not paid even a 'pesewa' as tax and the IRS had not taken any action against them.

The current tax liablilities of Ghana Palaver from 1998 to date stands at ?75 million. Chronicle sources at the Ministry of Finance also confirmed the story, adding that they have fired a letter to the IRS, which has responded appropriately to the issue.

Ministry of Finance officials would, however, not reveal what action would be taken when the Chronicle sought to know if they would be prosecuted or simply made to pay up.

It was also established by the Chronicle that, even-though most government establishments officially subscribe to two-state-owned newspapers, The Graphic and The Ghanaian Times, the Ghana Palaver was forced on to some government departments and agencies and paid for by the tax payer to cushion the paper from its dwindling sales and financial difficulties.

Last week, the Chronicle broke a story in which the former Minister of the Interior, Nii Okaija Adamafio, ostensibly in a bid save the paper from collapse and poor patronage, forced it on the various District Assemblies as a way of also enhancing the party's propaganda efforts at the assembly level.

Calls to the office of the Ghana Palaver to comment on the issue could not go through at the time of going to press.