Business News of Wednesday, 23 October 2019
Source: www.ghanaweb.live
2019-10-23GRA uncovers massive rot at Chinese food company in Tema
play videoThe two Chinese nationals arrested in the revenue collection exercise
The Ghana Revenue Authority, as part of its regular revenue collection exercise across the country, has uncovered a massive case of tax evasion by a Chinese-owned food and beverage company.
DADA Food Company Limited is located on the outskirts of Tema and fully owned by Chinese nationals.
Two Chinese nationals - a managing director and his accomplice
Read full article- have been arrested to that effect.
Prior to this, the GRA through its intelligence team at down of Saturday, October 19, 2019, around 2 am, impounded two trucks loaded with beverages produced by the aforementioned company.
Head of Revenue Tax Mobilization, Henry Bradford Sam explained in an interaction with the media October 23, 2019 that, “We picked up intelligence to the effect that DADA Food Company Limited, a company that is duly registered with the Ghana Revenue Authority was suppressing sales, falsifying the VAT invoice and evading payment of lawful taxes due the state. An interception took place on the motorway on Saturday and we accosted two vehicles.”
Upon further interrogations, the GRA uncovered that tax invoices issued to the company had different amounts.
“We have invoice number, 11574796 with the face value of GHC11,000, when you trace it to the duplicate copy, you have 1,100, so the 11,000 would have been supplied to the customer for payment to be made. When you come to the VAT invoice booklet, the duplicate copy with the same serial number, it has a different value which has been heavily suppressed.”
These are not the only suppressed figures discovered by the GRA as several other VAT invoices had also been taken through the same fraudulent effects.
The culprits will, however, be made to face the full rigours of the law with probable charges levelled against them including suppression of sales, evading of taxes, as well as the publication of false statements.
Mr Bradford said the GRA has retrieved all invoices and will subsequently subject the company to strict scrutiny after which they shall be liable to payment of a 100 per cent penalty for all tax shortfalls.
“We’re charging them for suppression of sales, tax evasion and making false and misleading statements. The Ghana Revenue Authority is going to reassess the company…we’re are going to retrieve all the invoices that have been issued to them and recheck the various amounts and subject them to comprehensive tax audits.”
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