3 companies owe GH¢247.7 million in unpaid VAT - GRA

The Commissioner in charge of Domestic Tax and Revenue Division of the Ghana Revenue Authority, Edward Appenteng Gyamerah, has indicated that three companies owe the state an amount of GH¢247.7 million in unpaid Value Added Tax (VAT) since 2021.

Breaking down the figures, Mr Gyamerah said Millicom Ghana Limited owed GH¢12.9 million, Federated Commodities Limited an amount of GH¢30.8 million, and the Produce Buying Company (PBC) owed the state GH¢203.9 million.

He made this disclosure when he appeared before the Public Accounts Committee (PAC) of Parliament to answer questions on tax violations and some red flags raised by the Auditor-General in his 2022 report on VAT infractions in ministries, departments and other agencies.

He, however, said the three entities were contesting the amount which is part of GH¢361.68 million owed the state by 2,557 registered VAT traders who filed their returns at various tax offices in 2021.

“Out of this GH¢275 million, Mr Chairman, GH¢247.7 million is being contested by three companies — Millicom Ghana Limited, Federated Commodities Limited and PBC," Mr Gyamerah said.

“In relation to Federated Commodities and PBC, it has to do with VAT on haulage of cocoa, which they are contesting in court, and we are waiting for a determination by the court on February 26, 2024," he explained.

The Commissioner in charge of Domestic Tax and Revenue Division of the Ghana Revenue Authority stressed that, “When the court determines that they are liable to pay, we will enforce the collections.”

Mr Gyamerah assured the committee that the GRA would utilise its enforcement tools to collect the outstanding GH¢247.7 million.

He said several letters had been written to the receiver of the defaulting financial institutions to pay the money owed the state.

Mr Gyamerah however said, “we are yet to receive any information from the receiver”.

SA/NOQ

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