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Crime & Punishment of Thursday, 30 November 2006

Source: GNA

Property rate defaulters to appear before court

Kumasi, Nov 30, GNA 96 The Kumasi Metropolitan Assembly (KMA) has issued Writ of Summons to some companies and individuals in its jurisdiction to appear before court for failing to honour their tax obligations.

Mr James Akoto, Head of Revenue Department of the KMA, told the Ghana News Agency in Kumasi on Wednesday that in spite of numerous demand notices and advice, most of them failed to honour their tax obligation and that the assembly had no option than to resort to court action to recover the arrears.

He said because many people were not paying their taxes, KMA could not implement adequate development projects in the metropolis. He said some hotels owed the KMA as much as 30 million cedis while Ghana Breweries, owed 79.7 million cedis, Ghana Food Distribution Corporation, 76 million cedis, Omega Wood Process, 45 million cedis and S.O. Boateng, 35 million cedis.

Mr Akoto indicated that some legal firms including 91Gye Nyame', Africana, Sekyere and 91Boafo Ye Na' Chambers owed the assembly to the tune of 5.4 million cedis.

He said Tri-Star Insurance Brokers and Akoto Risk Management Insurance Brokers owed it five million cedis, adding that many Outdoor Advertisement Units owed it millions of cedis. He said Gerofix Rent-a-Sign owed the assembly 480 million cedis, Prospective Marketing and dynamite Communication, both in Accra owed it 25 million cedis each, Guinness Ghana, 60 million cedis, Kessben Group of Companies, 65 million cedis and the Ghana Water Company Limited, 30 million cedis.

Mr Akoto pointed out that most of these defaulters owed their indebtedness as far back as 2000 and said the KMA would do everything possible to compel them to settle the arrears. He called on assembly members, unit committees, Sub-Metropolitan Councils in the metropolis and other stakeholders to support the assembly to meet its set objectives. He said some of the defaulters would be summoned before the Ashtown Court while others would be sent to the Kumasi Metropolitan Court. He stressed the need for all property owners and organisations to endeavour to honour their tax obligations next year so that such legal exercise would not occur and that the KMA would also raise money to undertake development projects. 30 Nov. 06