Business News of Saturday, 7 February 2015
Three companies which deal in building materials have fallen foul of the law for failing to issue Value Added Tax invoices to clients, resulting in the loss of tax revenue to the state.
The three companies are K. Ofori Company Limited at Dawhwenya; Nana K. Gyasi Company Limited, Pokuase branch, and the Awoshie branch of Eno Fransor Company Limited.
Although the companies add the cost of VAT to the goods sold they failed to issue the appropriate VAT receipts to their clients.
This came to light when the Ghana Revenue Authority Debt Management and Compliance Enforcement Unit embarked on a special exercise dubbed: “The Test Purchases Operation,” to ensure compliance of the tax laws.
In unannounced visits, officials of the Debt Management and Compliance Enforcement Unit of the GRA, with support from the police, questioned the shop managers and took away all receipts and invoice booklets for study to enable them to assess the amount of revenue lost to the state.
Officials of the GRA would be attached to the companies for a month to find out the volumes of trade and ensure that the tax invoices are issued.
Dr Dela Heloo, Assistant Commissioner and Head of the Debt Management and Compliance Enforcement Unit of the GRA, said failure to issue VAT and National Health Insurance Levy (NHIL) invoices for business transactions was against the law.
He said the operation followed complaints from some individuals who, after business transactions with the companies, were not issued with the appropriate tax invoices, although they had been charged.
Dr Heloo urged the public to insist on tax invoices in compliance with the law.