MultiChoice Ghana has had a successful court ruling in a case in Kumasi pertaining to a person caught selling MultiChoice Nigeria decoders in Ghana.
The convicted person, Emmanuel Addae, was raided and arrested in Kumasi in 2019 following a tip-off.
He was convicted this on Friday, August 19, 2022 and sentenced to pay Ghc 12,000 or in default, to serve one year in prison. He could not pay the fine immediately and thus has been processed to serve his term in prison.
According to Alex Okyere, Managing Director, MultiChoice Ghana, “the activities of such persons on the market contravene the Electronic Communications Act and a number of importation and tax laws in Ghana.”
He explains MultiChoice Ghana is the only company in Ghana with the special license to import and distribute DStv decoders across the country.
He added, “MultiChoice Ghana has been working with the Ghana Police Service and other security agencies to track and raid persons involved in selling MultiChoice Nigeria decoders on the Ghanaian market highlighting there are a number of such cases under investigation and awaiting trial.” More raids of such nature will be carried out in the near future, he concluded.
By law, all monthly DStv subscriptions paid in Ghana should attract the following taxes 2.5% NHIL, 1% Covid-19 Levy, 2.5% GetFund, and 5% CST. Value Added Tax (12.5% VAT) is a tax applied on the value added to goods and services at each stage in the production and distribution chain. It forms part of the final price the consumer pays for goods or services. The National Health Insurance Levy (NHIL) is a levy on goods and services supplied in or imported into Ghana.
All goods and services are subject to the levy unless they are exempt. The Communications Service Tax (CST) is a tax levied on charges for the use of communications services that are provided by communications service operators. CST is imposed under Section 1 of the Communications Service Tax Act 2008, (Act 754).
These DStv decoders from Nigeria are smuggled into the country, denying the country of requisite import duties, then are sold to the unsuspecting public by these unscrupulous persons. The purchase and use of such decoders make one an accessory to tax evasion as your monthly subscriptions are paid in Nigeria, thus, avoiding the payment of tax in Ghana.
According to Section 86 and 149 of the Ghana Revenue Act, a person who enters a contract with a non-resident person for the supply or use of goods or property of any kind, or the supply of any services, which contract gives rise to income accruing in or derived from Ghana, shall pay taxes on that service or good. Failure to Pay Tax is liable onto a summary conviction, of imprisonment for a term of not less than three months and not more than one year, or both.
During the raid ledgers with accounts and personal details of persons they were illegally collecting subscriptions from, and several boxes of decoders were seized. MultiChoice Ghana urges anyone who may have acquired such decoders to contact the nearest MultiChoice Ghana Office to have their decoder regularized.