The Ghana Revenue Authority (GRA) has apprehended Melcom Managers during its Electronic VAT (E-VAT) patrol today, Wednesday, February 1st, 2023.
The exercise which began yesterday, is part of the GRA’s efforts to increase revenue collection by enforcing tax laws.
The Melcom Managers for Kasoa, North Kaneshie and Achimota branches were picked up by the Customs Division of the Ghana Revenue Authority (GRA) for alleged refusal to issue E-VAT to customers during today’s exercise.
Melcom is among 50 shopping centers that the GRA has decided to test its E-Tax Initiative on – the initiative, designed to serve as a check on the tax compliance and enhance transparency in tax collection.
The managers arrested from the Kasoa, Achimota, and North Kaneshie branches have been transferred to the Criminal Investigation Department (CID) of the Ghana Police Service for further investigation and prosecution.
According to Joseph Annan, the Accra Area Manager for Enforcement at the Ghana Revenue Authority, the shopping centres (referring to Melcom) were issuing VAT invoices outside the electronic system that was installed by the GRA, calling for their arrest.
“So today, we are doing for Melcom shopping centres in Kasoa, Achimota and Kaneshie branches as a continuation of our exercise on the electronic VAT installation.
“We have arrested the managers of those branches and we’re sending them to our head office to take their statements. Then the CID will take over from there but their offence is issuance of non-electronic VAT invoice – which means that they are not issuing VAT through the electronic system.”
Mr. Annan
The GRA Area Manager for Enforcement further indicated that, the exercise will continue as it is part of their plans this year to roll onto the electronic system more centres.
Meanwhile, there is an ongoing investigation to examine some claims coming from some of the managers who reported struggling with the new system.
Prior to this, officials from several well-known shopping centers in the Greater Accra region were arrested by officers from the the Customs Division of the Ghana Revenue Authority (GRA) yesterday, January 31st, 2023, for producing false Value Added Tax (VAT) invoices.
These picked up shops include: China Mall, Sneda Shopping Centre, Palace Mall and Second Cup Coffee all on the Spintex Road, as well as Shoprite at the Junction Mall situated at Nungua.
The exercise was conducted by a joint team from the GRA, and the Criminal Investigations Department (CID) of the Ghana Police Service.
GRA discloses the non-compliance of some pilot tested companies for the E-VAT system
Speaking to the media, Edward Gyambrah, the Commissioner for Domestic Revenue at the GRA, revealed that some companies engaged to pilot test the effectiveness of the electronic VAT system, tampered with it and compromised the system.
“Some of these tax payers who are supposed to be hooked on to the Commissioner General’s invoicing system are not fully complying with the directive and we realized that some were issuing invoices outside the system and this is an infraction of the law.”
Mr. Gyambrah
Additionally, Mr. Gyambrah explained this move by the GRA as a continuation of the electronic VAT enrollment system which was introduced by the Authority in the last quarter of 2022.
Meanwhile, Enforcement Manager in charge of Accra at the GRA, Joseph Annan disclosed that all the managers who have been arrested will be made to face the law court.
“We’re expected to begin prosecution on them immediately because they want to take us for granted.”
Mr. Annan
Moreover, the exercise is expected to continue until all the selected shops for the E-VAT system comply with the law.
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