The Ghana Revenue Authority (GRA) says it will take further action against SOL Cement, the company closed down for evading taxes amounting to GH¢700 million, if it fails to pay 40 per cent of its debt within 30 days.
According to Commissioner of Domestic Taxes, GRA, Edward Gyamerah, the action could include confiscation of the company’s assets to recover the liabilities.
Mr Ofori-Atta (second right), Mr Gyamerah, Mr Zhu and others during the visit
As part of the conditions for reopening, he said, the company would also be required to submit a payment plan of the remaining 60 per cent for consideration before it is allowed to resume operations.
He was speaking at Tema yesterday when the Minister of Finance, Ken Ofori-Atta, visited the company’s premises in the company of other officials of the GRA to obtain firsthand information about the action taken by the Authority.
“We will reopen operations once they make a 40 per cent settlement of their liabilities and provide a realistic plan for the remaining amount,” Mr Gyamerah stated.
So far, he explained that the company’s proposed repayment terms in their discussions with the GRA have been unsatisfactory, resulting in the company remaining closed.
He said the Authority, going forward, had put in place measures to clamp down on tax evasion by manufacturing companies saying that “this action marks the beginning of efforts to strengthen the country’s revenue.”
Although the company remained shutdown, he noted that, the GRA was pursuing further engagement with the company to resolve the impasse.
Mr Ofori-Atta expressed concern about the challenges companies were facing in meeting their tax obligations, especially given the significant volume of raw materials imported for cement production.
He urged the GRA to continue in its efforts to enhance tax compliance, adding that the Ministry would provide the needed support as it worked to improve the country’s revenue.
General Manager of SOL Cement, Amani Zhu assured that the company was committed to fulfilling its tax obligations to the country.
He said the company would continue its engagement with the GRA to resolve the matter.
SOL Cement was closed down by the GRA on October 26 this year for defaulting in the payment of tax amounting to GH¢700 million.
The company was cited for VAT infractions, corporate income tax, and penalties after a tax audit from 2021 to date by the GRA’s tax enforcement.