3 Companies owe GH¢247.7 million in unpaid VAT

Three companies owe the state GH¢247.7 million in unpaid value added tax (VAT) since 2021, the Commissioner in-charge of Domestic Tax and Revenue Division of the Ghana Revenue Authority, Edward Appenteng Gyamerah, has told the Public Accounts Committee (PAC) of Parliament.

Mr Gyamerah said out of the amount, Millicom Ghana Ltd owed GH¢12.9 million, Federated Commodities Limited owed GH¢30.8 million, while the Produce Buying Company (PBC) owed GH¢203.9 million.

He, however, said the three entities were contesting the amount, which is part of GH¢361.68 million owed the state by 2,557 registered VAT traders who filed their returns at the various tax offices for the 2021 year of assessment. 

Mr Gyamerah disclosed this when the GRA appeared before the committee to respond to questions on red flags raised by the Auditor-General’s Report on VAT infractions in the accounts of ministries, departments and other agencies for the year ended December 31, 2022.

The GRA delegation was led by the Commissioner, Rev. Dr Ammishaddai Owusu-Amoah.

It came to light when a member of the PAC asked whether the GRA had been able to recover the GH¢361.68 million.

Mr Gyamerah said the GRA had been able to recover part of the money.

Challenge

He said the GRA had so far retrieved GH¢60 million, GH¢25.1 in penalties, GH¢380,000 interest waived, with an outstanding amount of GH¢275.4 million.

“Out of this GH¢275 million, Mr Chairman, GH¢247.7 million is being contested by three companies — Millicom Ghana Limited, Federated Commodities Limited and PBC.

“In relation to Federated Commodities and PBC, it has to do with VAT on haulage of cocoa, which they are contesting in court, and we are waiting for determination by the court on February 26, 2024.

“When the court determines that they are liable to pay, we will enforce the collections,” he said.

Mr Gyamerah assured the committee that the GRA would employ its enforcement tools to collect the outstanding GH¢247.7 million.

When the Chairman of the committee, Dr James Klutse Avedzi, asked why those companies were contesting those tax liabilities, Mr Gyamerah said “it is their right, but we have the law on our side”.

Defunct financial institutions 

The Auditor-General’s Report also tasked the GRA to see to the recovery of an outstanding GH¢161.67 million and $44,816 corporate and personal income taxes due the state by 5,692 companies, business entities and sole proprietors.

Responding, Mr Gyamerah told the committee that the GRA had fully recovered the dollar component of $44,816, as well as 76.4 per cent of the cedi component, with GH¢39.77 million still outstanding.

“Out of this GH¢39.77 million, we have an amount which is owed by defunct financial institutions to the tune of GH¢9,218,258,” he said.

He informed the committee that the GRA had written several letters to the receiver of the owing financial institutions to pay the money, adding, however, that “we are yet to receive any information from the receiver”.

Defaulting employers

On what the GRA had been able to do to retrieve the GH¢157.65 million and $2.51 million that 1,966 employers failed to pay to the GRA as pay PAYE deductions for their employees, Mr Gyamerah said the dollar component had been recovered fully while 81.6 per cent of the cedi component had also been recovered.

“For the outstanding GH¢29 million, we have GH¢19.6 million relating to 17 of the defunct financial institutions.

“The receiver has been written to so that when they recover money from these institutions, the GRA should be paid first,” he said, adding that the GRA was using its enforcement tools to recover the outstanding money.

A question was also asked about the action the GRA had been able to execute in respect of the failure of 829 companies to withhold taxes on goods and services subject to taxes amounting to GH¢96.17 million.

Answering, Mr Gyamerah said out of the amount, 61.1 per cent had been resolved, with GH¢37.4 million still outstanding.

Out of the GH37.4 million, he said, GH¢23 million was owed by Millicom Ghana Limited which had disputed the amount, causing the GRA to take Millicom to court.

“The court ruled in our favour and they (Millicom) have also appealed and the matter is currently before court.

“We are waiting for a determination on the GH¢23 million on February 2, 2024,” he said.

Mr Gyamerah added that GH¢7.7 million of the GH¢34.7 million was also owed by 19 defunct financial institutions.

“We are using the same enforcement tools to recover the outstanding balance, Mr Chairman,” he said.

Question on GRA Commissioner's age

Meanwhile, Graphic Online's Parliamentary reporter, Daniel Kenu reports that proceedings at the Public Account Committee of Parliamentary was stalled temporary on Monday when the Commissioner General of the Ghana Revenue Authority, Rev. Dr. Ammishaddai Owusu-Amoah was asked when he attained the age of 60.

The question was from the Member of Parliament for Ningo Prampram, Sam Nartey George.

The deputy minister of Finance, Abena Osei Asare, under whose ambit the GRA was appearing before the committee to answer questions on some infractions jumped in, but the chairman of the committee, James Klutse Avedzi, insisted that the Commissioner General should answer the question.

The chairman of the committee said Rev. Dr Owusu-Amoah was a public servant and therefore there was nothing wrong with the question.

But the deputy finance minister, said the question was personal and should not be allowed to fly.

While the back and forth was ongoing, the deputy finance minister moved towards the chair.

Sitting was then suspended for about 45 minutes to address the issue backstage.

Questions on retirement

There has been some public discussions about Rev. Dr. Ammishaddai Owusu-Amoah's age and a call by some people for him to retire with the argument that he is over 60 years old, the mandatory retirement age for public officers.

There is also another argument about the President's prerogative to offer contract to certain appointees who are more than the mandatory retirement age of 60 years in the public service but whose services are still needed by the state.

Who is Rev. Dr. Ammishaddai Owusu-Amoah

Rev. Dr. Ammishaddai Owusu-Amoah is the Commissioner – General of the Ghana Revenue Authority.

Before assuming the top most job at the GRA, he had a vast experience in leadership, management, and banking operations.

He started his career in the public service with the Ghana Statistical Service as an Assistant Statistician and later worked in various capacities in banking and management.

Experience

Rev. Dr. Ammishaddai Owusu-Amoah is a seasoned international banker with almost 30 years’ experience in Research, Corporate banking, SME/Retail Banking, Strategic Leadership and Strategic Planning and has worked in different countries in Africa and undertaken short term assignments in several countries.

Rev. Dr. Owusu-Amoah started his career as an Assistant Statistician with the Ghana Statistical Service engaged in Economic, Social and Statistical Research before joining Standard Chartered Bank, as a Statistician and Research Officer in 1993.

For his exceptional performance in the Bank, he gained rapid promotions over a period of 9 years into various Senior positions.

These include: Financial Business Support Manager with responsibility for managing the budgeting and planning function of the Bank; Head of Credit Services for Standard Chartered Bank West Africa and Head of Operations and Technology for Standard Chartered Bank Ghana where he became a member of the Executive Committee of the Bank.

He was appointed Group Head of Operations for Ecobank Transnational Incorporated (ETI) based in Togo where he supervised the operations functions over all the countries of the Ecobank Group.

He was very instrumental in setting up from scratch the Ecobank Operations and Technology hub in Ghana known as eProcess International.

He joined uniBank Ghana Ltd in 2007 where he became the Managing Director and Chief Executive Officer.

He left uniBank in 2011 and joined Bank of Africa Group as Managing Director and CEO of Bank of Africa, Tanzania for seven years until he was appointed as Group Executive for Special Projects, including Mergers and Acquisitions, strategic collaborations and alliances for the Bank of Africa Group and other international banks.

Rev. Dr.Owusu-Amoah, has been a major speaker at conferences and seminars for several International Organizations and Development Finance Institutions (DFIs), such as the International Finance Corporation (IFC) and the Belgium Investment Organization (BIO).

Rev. Dr. Ammishaddai has served on several boards and has contributed significantly to development of the Finance Industry.

He was the Chairman of the Board of the Tanzania Mortgage Re-Finance Company, Chairman of the Board of Umoja Switch Tanzania Limited, Member of the Governing Council of the Tanzania Bankers Association and Chairman of the Credit Sub Committee of the Governing Council of the Tanzania Bankers Association. He also served as Chairman of the Board of uniSecurities Ghana Limited, and Vice Chairman of the Board of Akuapem Rural Bank Limited.

He is currently a member of the Board of the National Identification Authority, A member of the Board of GCNet Ghana Limited, and a member of the Board of the Minerals Income Investment Fund.