VAT Secretariat retrieves about 11 billion cedis

Accra, Dec. 15, GNA - The VAT Service Secretariat has so far retrieved about 11 billion cedis out of the total debt of 20 billion cedis owed the Service through distress actions it took to meet its tax collection target set for the year.

Following the distress actions, many businesses and companies had been closed down in some parts of the country in an effort to collect and recover the total debts owed, Mr Henry Sam, Head of the Enforcement Team, told the Ghana News Agency.

Three Accra Companies 96 the Mobile World, dealers in mobile phones owed 511.4 million cedis; Research and Marketing Services Ghana Limited owed 65.1 million cedis and Sunspot Hotel, which owed 95 million cedis, - were all closed down for defaulting in the payment of the tax. When the Enforcement Team got to the Sunspot Hotel at the Airport Residential area, things took a different turn when some school children that had paid to use the poolside, demanded a refund of their money creating confusion between the workers and the children at the premises. Other companies which defaulted included GIANT International Ghana Limited in Accra, which owed 83.7 million and Compudist Ghana Limited 62.3 million cedis.

Mr Sam said the defaulting period ranged from between six months and two years and the amount involved depended on the returns filed by the various companies.

He said the distress action came as a last resort after all means to collect the debt has failed. "Even with that we issue them with a final demand notice before the action", he said. He urged all businesses registered with VAT to treat the Service with respect and to act within the time frame to avoid being embarrassed through the distress action.

He said so far VAT had undertaken 229 distress actions which had yielded positive results for the Service.