VAT Service reminds businesses to submit returns by February 26

Accra, (Greater Accra) 16 Feb. '99,

The Value Added Tax (VAT) Service today reminded all registered businesses to submit their returns for the period December 30, 1998 to January 31, by February 26 or pay a penalty of one million cedis.

It said defaulters would also pay 5,000 cedis for each day the return is not submitted.

, Mr Victor Obeng Ampah, head of VAT publicity department, said in Accra today that VAT returns sheets have been distributed and registered businesses should ensure that they receive and complete them.

This is because businesses cannot hide behind non-receipt of returns sheets as excuse for not filing. It is their obligation to make sure they receive and submit them on time to avoid any sanctions.

The VAT law states that "a return shall be submitted to the Commissioner not later than the last working day of the month immediately following the month to which the return relates."

In default, the law states that "a taxable person who without justification fails to submit to the Commissioner his tax return on the due date shall be liable to a pecuniary penalty of one million cedis and a further penalty of 5,000 for each day that the return is not submitted."

Mr Samuel Tetteh, officer in charge of receiving and processing of returns at the North Kaneshie Local VAT Office (LVO), said some entrepreneurs, mostly service providers, have started filing their returns.

He said as at the beginning of last week, they were receiving an average of 10 returns a day. This has doubled and they expect it to increase to about 250 a day from next week.

Mr Tetteh advised businesses which may not have received the return sheet because of late registration to file their returns through the "unaccompanied return procedure" which requires that they fill a "VAT 23 form" at the VAT Service and pay cash where applicable.

Nii Aryee Ayittey, Acting Head of the Adabraka LVO, said his branch has distributed about 80 per cent of the returns sheets. It has 2,000 registered businesses.

The rest have not been distributed due to difficulty in locating business premises, he said, adding that ''we expect them to come for the forms themselves because it is their obligation.''

At the close of business last Friday, about 37 traders had filed their returns there.

Nii Aryee described it as "very encouraging" saying ''most of the time, traders prefer to re-invest their turnover for more profit and will therefore want to file their returns later in the month.''

GRi