Thursday, June 18, 2009

VAT SERVICE LOCKS UP 19 DEFAULTING FIRMS (PAGE 21)

THE Takoradi office of the Valued Added Tax Service
(VAT) has locked up the premises of 19 defaulting companies in the Western Region in an action to recover GH¢1.08 million owed it.
The affected companies are in the service, manufacturing, retail and other sectors who failed to honour their tax obligations.
The debts consist of payment returns that traders filed but failed to pay the declared amount, as well as accumulated interest, penalties and the assessment of tax audit.
According to officials, as a result of the non-payment, the Takoradi office has fallen short of its revenue target by 29 per cent.
According to officials, the exercise was aimed at recovering taxes to make up deficits to achieve mid-year projections.
Mrs Emelia Asam, the Deputy Regional Manager, told the media in Takoradi that 13 of the defaulters were within the Sekondi/Takoradi Metropolis with a debt profile of more than GH¢874,000 while six located in Tarkwa accounted for GH¢297,000.
Mrs Asam said it was not the wish of the VAT Service to always use distress action to recover debts, but the affected companies failed to honour their tax obligations.
She explained that the tax collected by these companies did not form part of their operational capital and that for a speedy development of the county it was just right for the companies to honour their tax obligations.
She said before the VAT Service embarked on the action, the affected companies were given notice through the service’s field workers, as well as electronic and print advertisements, at a cost to the service.
“But many of the companies failed to meet the deadline given them which left us with no other option than to seal their premises,” she said.
Mrs Asam appealed to other companies to take steps to clear their debts before the service completed its investigations.
She also urged companies registered with the service to submit their monthly returns within the stipulated time to avoid payment of interest, penalties and closure of their premises.

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