GRA Chases 93 VAT Defaulters

The GRA Enforcement Team at Paladin

The Ghana Revenue Authority (GRA) Enforcement Unit has increased its activities in ensuring businesses comply with the Value Added Tax (VAT) laws, targeting over 93 companies in its latest enforcement exercise.

The team last week visited eight organisations; Tasty Treat Restaurant at UG medical Center, Noguchi, Obession: Ladies and More, Luxiwear Ladies Dresses and More, and ECO furniture Works all at East Legon.

Others were Paladin Doors, at Madina, The Lords of Host Ent., AB Tissues and More, and TF’s Bar and Restaurant all at Adenta.

Commissioner in charge of Domestic Tax Division at the GRA, Edward Gyamerah, said managers of these businesses were arrested for non issuance of VAT invoice.

“Some are doing selective issuance and some are not issuing at all they tell us they are in the process of registering for VAT but of course we deal with the law and section 41 of the VAT Act clearly states that you should be issuing the invoice at all times so once we come and you fail the test then obviously you need to be arrested and the CID will take charge and build the docket for our legal unit,” he said while addressing the media after the exercise.

He said businesses found culpable in previous exercises are being audited adding that so far there are cases that are going under assessment and full audit while some are being processed for court.

He urged consumers to insist on collecting their VAT invoice when they purchase an item indicating that it is a collective responsibility.

The exercise is expected to help the GRA mobilise revenue for the state, as well as aid in meeting its revenue target.

Also, managers of Chez Amis, Waves Lounge all at East Legon and Grand Pacific at the Dzorwulu Junction were picked up by the enforcement team during an earlier operation on May 17, 2023

“Test purchases conducted on 115 tax payers sampled for a week revealed a total number of 93 tax payers not issuing the VAT invoice. This translates into a non-compliance rate of 80.9%”, Mr. Gyamerah said.

He stated that some other businesses refused to register for tax payments even though they were oblige by law to register.

“It is an offence for a registered tax payer to fail to issue VAT invoice for a purchase made therefore we shall made them face the law,” he said.

By Jamila Akweley Okertchiri

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