VAT mounts distress action on 13 business concerns

Takoradi, Jan. 26, GNA - The Takoradi Valued Added Tax (VAT) office has begun a three-day distress action on 13 business concerns that owe 352,801.25 Ghana cedis.

Mr Peter Sagpio, Head of the In-Door Operations and Client Service of the Takoradi VAT office, said this in an interview with the press at Takoradi on Tuesday.

He said some of the business concerns failed to pay their VAT at the right time while others failed to make the correct VAT declaration and this was detected during audit. Mr Sagpio said business concerns pay VAT by their own assessment and the taxpayer is not challenged at the point of payment but periodically the VAT Service audits business concerns to ascertain whether they declared and paid the correct VAT.

He said in 2009, the total amount owed to the local VAT Office by business concerns was 1,432,519.11 Ghana cedis but 833,269.34 Ghana cedis of the liabilities was recovered leaving a balance of 599,249.77 Ghana cedis. Mr Sagpio said the business concerns owing the local VAT office negotiated with the Commissioner of VAT to reschedule the debt and payment timetables were agreed upon. He said the distress action was not an attempt by the VAT Service to collapse businesses but to enforce the VAT Law.