VAT Service undertakes distress action to recover monies

Accra, Aug. 22, GNA - The Value Added Tax (VAT) Service on Friday threatened legal action against companies that refuse to pay back monies they collect on behalf of the Service.

Mr Maxwell Tsatsu, Head Enforcement and Debt Management of the Service, gave the warning in Accra, when he interacted with Journalists. This was after the VAT Service had undertaken a distressed exercise against five companies to recover more than 500 million cedis.

Under the VAT Act, the Service is authorised to institute a distress warrant against companies that default in payment by taking hold of their properties and auctioning them after a two-week ultimatum. Four of the affected companies immediately issued Bank cheques to clear the debt with the exception of Fruitpack Limited located off the Tema Motorway.

The VAT service seized computers and accessories and other equipment of the company to defray arrears of 48.7 million cedis. The Storekeeper of the company, who spoke on condition of anonymity, said the company has been out of operation for the past two months. Mr Tsastu said the exercise would be carried out nationwide.