VAT SERVICE WAGES WAR ON DEFAULTING COMPANIES (PAGE 21)

Story:Moses Dotsey Aklorbortu, Takoradi

THE Western Regional Office of the VAT Service has embarked on distress action to recover GH¢250,000 owed it by 19 companies in the region.
Speaking to the press, the acting regional head of the service, Mrs Agnes A. Adu-Boateng, said it took the action because the companies had failed to adhere to numerous reminders sent to them.
She said the failure by the companies to settle their indebtedness had contributed to the service’s inability to meet its revenue target from January to April 2008.
“Under Section 34 of the VAT Act 1998 (Act 546 as amended ) and its LI 1646, the Commissioner of the VAT Service, acting through his assigns, is empowered to undertake an exercise called ‘distract for liability in recovery of overdue debts from our clients’,” she said.
Mrs Adu-Boateng stated that the VAT Service considered its clients as very important when it came to tax collection from members of the public, explaining that the service was not interested in locking up the premises of companies to compel them to pay the taxes.
“However, when the debt is overdue, we have no option but to evoke the law to ensure that the right thing is done,” Mrs Adu-Boateng stated.
She said there was enough time for the clients to file their returns and pay what they collected from their customers for the state.
She said the 19 companies in the region whose premises had been locked up had 14 days to settle their debts, failure of which the service would auction their property and use the proceeds to settle the debts.
Mrs Adu-Boateng said nine of the defaulting companies were located in the Sekondi/Takoradi metropolis, with the remaining 10 in Tarkwa and its environs.
“Even though we appreciate the efforts of our clients, they should make right declarations, effect payment at the end of the month and submit their returns within the stipulated time to avoid penalty,” she advised.
Asked if the distress action taken against the companies had yielded any positive results, she said, “We have been able to recover GH¢130,000 out of the GH¢132,000 they owed the service.”