Three companies owe the state GH¢247.7 million in unpaid value added tax (VAT) since 2021, the Commissioner in-charge of Domestic Tax and Revenue Division of the Ghana Revenue Authority, Edward Appenteng Gyamerah, has told the Public Accounts Committee (PAC) of Parliament.
Mr Gyamerah said out of the amount, Millicom Ghana Ltd owed GH¢12.9 million, Federated Commodities Limited owed GH¢30.8 million, while the Produce Buying Company (PBC) owed GH¢203.9 million.
He, however, said the three entities were contesting the amount, which is part of GH¢361.68 million owed the state by 2,557 registered VAT traders who filed their returns at the various tax offices for the 2021 year of assessment.
Mr Gyamerah disclosed this when the GRA appeared before the committee to respond to questions on red flags raised by the Auditor-General’s Report on VAT infractions in the accounts of ministries, departments and other agencies for the year ended December 31, 2022.
The GRA delegation was led by the Commissioner, Rev. Dr Ammishaddai Owusu-Amoah.
It came to light when a member of the PAC asked whether the GRA had been able to recover the GH¢361.68 million.
Mr Gyamerah said the GRA had been able to recover part of the money.
Challenge
He said the GRA had so far retrieved GH¢60 million, GH¢25.1 in penalties, GH¢380,000 interest waived, with an outstanding amount of GH¢275.4 million.
“Out of this GH¢275 million, Mr Chairman, GH¢247.7 million is being contested by three companies — Millicom Ghana Limited, Federated Commodities Limited and PBC.
“In relation to Federated Commodities and PBC, it has to do with VAT on haulage of cocoa, which they are contesting in court, and we are waiting for determination by the court on February 26, 2024.
“When the court determines that they are liable to pay, we will enforce the collections,” he said.
Mr Gyamerah assured the committee that the GRA would employ its enforcement tools to collect the outstanding GH¢247.7 million.
When the Chairman of the committee, Dr James Klutse Avedzi, asked why those companies were contesting those tax liabilities, Mr Gyamerah said “it is their right, but we have the law on our side”.
Defunct financial institutions
The Auditor-General’s Report also tasked the GRA to see to the recovery of an outstanding GH¢161.67 million and $44,816 corporate and personal income taxes due the state by 5,692 companies, business entities and sole proprietors.
Responding, Mr Gyamerah told the committee that the GRA had fully recovered the dollar component of $44,816, as well as 76.4 per cent of the cedi component, with GH¢39.77 million still outstanding.
“Out of this GH¢39.77 million, we have an amount which is owed by defunct financial institutions to the tune of GH¢9,218,258,” he said.
He informed the committee that the GRA had written several letters to the receiver of the owing financial institutions to pay the money, adding, however, that “we are yet to receive any information from the receiver”.
Defaulting employers
On what the GRA had been able to do to retrieve the GH¢157.65 million and $2.51 million that 1,966 employers failed to pay to the GRA as pay PAYE deductions for their employees, Mr Gyamerah said the dollar component had been recovered fully while 81.6 per cent of the cedi component had also been recovered.
“For the outstanding GH¢29 million, we have GH¢19.6 million relating to 17 of the defunct financial institutions.
“The receiver has been written to so that when they recover money from these institutions, the GRA should be paid first,” he said, adding that the GRA was using its enforcement tools to recover the outstanding money.
A question was also asked about the action the GRA had been able to execute in respect of the failure of 829 companies to withhold taxes on goods and services subject to taxes amounting to GH¢96.17 million.
nswering, Mr Gyamerah said out of the amount, 61.1 per cent had been resolved, with GH¢37.4 million still outstanding.
Out of the GH37.4 million, he said, GH¢23 million was owed by Millicom Ghana Limited which had disputed the amount, causing the GRA to take Millicom to court.
“The court ruled in our favour and they (Millicom) have also appealed and the matter is currently before court.
“We are waiting for a determination on the GH¢23 million on February 2, 2024,” he said.
Mr Gyamerah added that GH¢7.7 million of the GH¢34.7 million was also owed by 19 defunct financial institutions.
“We are using the same enforcement tools to recover the outstanding balance, Mr Chairman,” he said.