The full KPMG report released by President Akufo-Addo on Wednesday has revealed that Strategic Mobilisation Ghana Limited (SML) owes the Ghana Revenue Authority (GRA) GH¢ 31.88 million for unpaid taxes.
The amount according to the report is over eight months of service provision.
In addition to the taxes is an accrued interest, estimated at GH¢ 18.50 million as of January 31, 2024.
KPMG’s report further explained SML has failed to fulfill its statutory obligations by neglecting to file its tax returns or remit the owed taxes to the GRA.
This deviation from standard practice occurred between June 1, 2020, and August 31, 2023, during which the GRA typically deducts taxes for payments made to SML.
The audit firm said GRA’s attention was drawn to the discrepancy after which GRA wrote a letter to SML, demanding payment, but the latter has still not fulfilled its obligation.
“During the period from 1 September 2020 to 30 April 2021, a bulk payment to SML covering invoices for an eight (8) month period, did not have VAT and WHT deductions, amounting to GH¢13.38 million. This contradicts GRA’s standard practice of deducting such taxes for payments to SML between 1 June 2020 and 31 August 2023.”
“Additionally, SML failed to fulfil its statutory obligations by neither filing returns nor remitting these taxes to GRA. Pursuant to Section 71(1) of the RA Act, the accrued interest on the tax liability is estimated at GH¢18.50 million owed by SML to GRA as of 31 January 2024. Consequently, the total liability incurred by SML amounts to GH¢31.88 million.”
“At the time of our review, we noticed the discrepancy and informed GRA, leading to their subsequent communication with SML, demanding a settlement of the outstanding amount,” an excerpt of the report said on page 14.
The President on January 2 commissioned KPMG to audit the controversial contract between GRA and SML following an investigation by The Fourth Estate which uncovered numerous irregularities.
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