PAC fumes over failure to charge VAT for services offered to churches, others

Nicholas Duncan-Williams, Presiding Archbishop and General Overseer of the Action Chapel International

Members of Parliament’s Public Accounts Committee (PAC) are unhappy over failure by the management of G-Pak Limited to charge VAT on printing contracts for some churches worth GH¢13,288.63.

The Auditor-General’s 2017 report revealed that 17.5% or GH¢13,288.63 VAT was not charged on eight sales invoices totalling GH¢75,935.00.

The report said the subsidiary of the Graphic Communications Group Limited failed to charge Royal House Chapel VAT on calendars it printed for the church in 2016 totalling GH¢12,775.00.

It further stated that VAT on printing of items for Action Chapel’s Impact 2016 programme totalling GH¢27,820 was also not paid.

Other companies included Raphael Sekle GH¢9,000.00, Mr Bamsah GH¢9,960.00, Choice Link Limited GH¢5,700.00, Shirley Acquah Harrison GH¢8, 450.00 for the printing of ‘The Wallet Gang’ and Sakoa Press with GH¢2,250.00, all totalling GH¢ 75,935.00

The report said the action by the management is in breach of Section 1 (1&2) of the VAT Act 2013, Act 860 as amended, and the management’s disregard to the Act resulted in the loss of GH¢13,288.63 expected tax revenue to government.

Mathias Kwame Ntow, a member of the Committee asked why the management of G-Pak Limited failed to charge 17.5% VAT on invoices of such contracts.

Responding to the Auditor General’s queries at Thursday’s PAC sitting, the Managing Director of G-Pak, James Edu Dadzie said they are making efforts to reach the clients to pay back the VAT it failed to charge.

He further told the committee that three out of the eight invoices of the clients have settled the VAT for government’s developmental agenda.

Mr Dadzie told PAC that the company is currently engaging the services of an agency to assist them in collecting the outstanding funds.

He confirmed that the company used part of its Internally Generated Funds to pay the Ghana Revenue Authority because failure by the clients to pay the VAT was caused by the company and G-Pak is doing its best to recover the funds to reimburse.

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