The Ghana Revenue Authority (GRA) has closed a Chinese company, Cheng Gong Ghana Limited, for failing to comply with the tax laws.
The company is said to have failed to comply with the GRA’s e-invoicing system for Value Added Tax (VAT).
Unlike the manual system, the e-invoicing system allows the GRA to monitor real-time transactions in companies where it has been implemented, making it impossible for taxpayers to under-invoice or avoid paying VAT.
The company was cited for the tax breach when GRA officials inspected some selected businesses at Spintex.
They discovered that the Cheng Gong company, along with other businesses, were not complying with E-VAT.
Assistant Commissioner Joseph Annan, GRA’s Accra Area Enforcement Manager, explained that the Authority had been consulting with the management of some selected businesses on how to launch the system, but that the majority of them had failed to comply.
According to him, GRA decided to seal the facility with the Commissioner General Seals because the facility’s management failed to comply with tax laws.
He emphasized that removing the Seal is illegal and would result in the place remaining closed until correct actions are taken.
Cheng Gong Ghana Ltd, Betje Enterprise, Zed Nails and Beauty, New Place Fabrics, New Place Collections, and Paul Right Shoes and Bags were also visited.
Others included Celebrity Style, Jolisaeko Enterprise, and Zilla Home Trading Enterprise.
These companies were cited for violations such as failure to issue invoices and selective issuing, among other things.
Mr. Annan stated that the authority will continue to implement tax policy initiatives to boost domestic revenue mobilisation, such as electronic VAT, electronic tax clearance certificates, upfront payments on imported goods, excise tax stamps, and the resumption of vehicle income tax payments.
The authority is implementing various initiatives to enhance revenue mobilisation, such as e-VAT invigilation, test purchases, and mystery shopping exercises.
By: Rainbowradioonline.com/Ghana