Business News of Thursday, 7 December 2017
The Ghana Revenue Authority (GRA) has served Allied Oil Company a garnishee order, directing the oil marketing company to pay any money due Ace Facade Limited, a construction firm, to the Authority for failing to pay tax.
Mr John Yaw Boaben, the Chief Revenue Officer of GRA, addressing the media during an exercise to ensure tax compliance, said Allied Company engaged the services of Ace Facade Limited to install aluminium panel system on its office project in Accra but the construction firm had failed to pay tax.
He explained that the order is a debt management tool which will direct Allied Oil Company to make any payment due Ace Façade to the GRA to settle the tax liability of the construction firm.
Mr Boaben said the directors of Ace Facade Limited have since 2014 to 2016 invaded tax to the tune of Ghc5.1 million and have absconded hence the need to serve Allied Oil Company with the order.
Mr Boaben explained that the amount was made up of direct taxes from the company income tax, PAYE of workers, withholding taxes, rent taxes, director’s remuneration and late penalties for late submissions of account.
He said his outfit had noticed that construction firms had been evading taxes and the exercise was aimed at compelling businesses to fulfil their revenue obligations.
Mr Boaben said the new Value Added Tax Act of 2013 (Act 870), makes it obligatory for businesses to pay their taxes to the GRA.
He said there was the need for the Authority to step up mobilisation efforts to get recalcitrant and taxpayers outside the net to fulfil their tax obligations for national development.
He urged organisations to do well to pay their tax to the Authority to avoid any form of embarrassment.