Registrar General’s Department unconcerned about Africa Automobile’s tax returns
The Registrar General’s Department has not been able to establish whether African Automobile Limited (AAL) filed its tax returns with the department for the period 2010-2011.
Advertisement
That was because the AAL had failed to re-register with the department after the department migrated onto an electronic system in 2011.
Migration
The department, following its migration, had urged companies registered with it to re-register in order to be captured under the electronic system.
This came up when an Assistant State Attorney of the department, Miss Sewwoe Kwakuvi-Zagbede, appeared before the Judgement Debt Commission (JDC) in Accra yesterday.
The Registrar General’s Department had appeared at the request of the commission to furnish it with information on whether the AAL had filed its tax returns for the 2010-2011 period.
Miss Kwakuvi-Zagbede, however, said AAL might have filed their returns but because it had failed to re-register under the new electronic system, it was difficult to ascertain that.
Scanty information
Miss Kwakuvi-Zagbede said even though the AAL had been registered for 38 years, the department was not able to get enough information on their filing of tax returns.
She recounted that in 2011, the department realised that the paper-based system it was operating was not producing the desired results and, therefore, decided to migrate onto an electronic one that provided more reliable and efficient coverage.
It was difficult, she said, for anyone to bypass the new system, adding that companies were directed to re-register for migration onto it.
She told the commission that before a company was migrated onto the new system, the Registrar General’s Department ensured that all outstanding returns were duly completed.
Miss Kwakuvi-Zagbedor admitted that there were a number of flaws in the registration system and that there were a good number of companies operating in the country which were not complying with the tax returns filing obligation.
But on the electronic platform, she said the system usually prompted companies via a text message or an email on the time for them to file a tax return when it was due, adding that a company that failed to do so was penalised by the department.
Background
The AAL petitioned the JDC over monies owed it by the state and which had led to the AAL instituting a total of 19 lawsuits against ministries, departments and agencies.
It has succeeded in getting the state to pay a total of GH¢14 million as interest but failed to pay tax on the interest, saying one was not obliged to pay tax on interests.
But the Ghana Revenue Authority (GRA) later appeared before the commission during which it averred that interest accruals were earnings and, therefore, taxable.
Writer’s email: victor.kwawukume@graphic.com.gh