GRA arrests shop owner, invites iron rod company for tax evasion

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The Ghana Revenue Authority (GRA) compliance and enforcement unit has arrested one shop owner and invited an iron rod company for failure to issue Value Added Tax (VAT) invoices of the Authority.

The GRA expects that all suppliers of taxable items, goods or services to issue VAT invoice as required by law while the customer is also required by law to obtain VAT invoice from business owners for goods purchased.

The shops were asked to close when the GRA performed a test-purchase on these companies to assess their compliance with issuing of VAT invoices.

The shops closed included all three branches of Ofori Mati Enterprise and K Tengkorang, all located in the Ledzokuku-Krowor Municipal District in the Greater Accra Region.

Mr John Yaw Boabeng, Head of Enforcement and Debt Management, Accra south, GRA, told the media that the
shops were closed due to nonconformity of business owner to issuing the commissioner’s invoice.

He said revenue was highly leaking from both companies which was affecting government revenues.

“It is as an offence not to issue VAT invoice and the law would take its own direction”.

He said people who flouted the law could be charged under sections 78 and 82 of the Revenue Administration Act, 2016 (Act 915) that focused on failure to comply with a tax law and impeding tax administration respectively.

“Penalties would be levied on them and also tasked them to comply by installing their cash till machine for full compliance”, he added.

Mr Boabeng, said: “Such practices are unfair aginst other companies therefore, the GRA must ensure the required compliance is met.”

He explained that shop managers invited to the GRA Head Office would be asked to pay a fine after auditing their sales.

“We will take all their suppliers invoices and take their own invoices for audit, and apply the appropriate sanctions”, he added.

He said statistics showee that Ghana’s revenue income was low as compared to other countries, hence we must perform our individual duties by issuing VAT invoice.

He urged the public to issue the VAT invoices and also renew their registration.

“If companies were complying, the GRA would not lock down shops to affect businesses”, he said.

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