Nine Shop Managers Caught In VAT Evasion

The GRA Team locking one of the shops during the exercise

 

Nine Shop Managers within Osu and East Legon vicinities have been caught in various Valued Added Tax (VAT) infractions by the Ghana Revenue Authority (GRA) tax enforcement unit.

The managers and sales girls of entities including Tropical Enclave at Osu was arrested for non issuance of VAT, Gordon Crystal at East Legon for issuing their own invoice, Hilton View Hotel and Precious Fabrics at East Legon also for not issuing the VAT. Managers of Brands 4 Less Kids, Lenpa Fabrics, Accessories and more, and Sheets and Towels Enterprise all at East Legon were also arrested for not registering for the VAT.

Managers of the Party Tree shop, and Lupita Collection at East Legon were arrested for not issuing the VAT.

However one enterprise, PISTIS Fashion at East Legon was found to have registered and was issuing the VAT.

“One place is registered and is compliant, So kudos to them,” said Assistant Commissioner and Head of the Accra Regional Enforcement Unit at the GRA, Joseph Annan.

He indicated the arrested managers and sales girls will be handed over to the Criminal Investigation Department (CID) for their statements to be taken for further investigations.

He, however, raises concerns that there was a huge concentration of shops at East Legon that are non-compliant to the VAT.

“It is quite disturbing that many of them are not registered. It’s an issue we need to tackle,” he said.

He indicated that VAT compliance is an issue nationwide because it is an indirect tax. “It is not like the direct tax where probably you need something and for that reason to come to the office at all cost; here, the incidence of the tax is on the consumer. So the taxpayer who is the trader or service provider is collecting for the government. So he has the money with him if you don’t come to him or her, they will not give it to you,” he said.

He thus called on the East Legon GRA team to work assiduously to ensure the shops under their jurisdiction comply with the VAT law.

 

By Jamila Akweley Okertchiri