Cheng Gong Ghana Limited, a company specializing in water factory and treatment machinery, recently found itself in a predicament when a taskforce from the Ghana Revenue Authority (GRA) took action by locking up their premises.

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This measure was taken in response to several violations, including the selective issuance of Value Added Tax (VAT) invoices to clients and the company's failure to release its sales records to the GRA, which is a legal requirement.In addition to Cheng Gong Ghana Limited, operators of ten other businesses have been summoned to the GRA's headquarters to address VAT-related offenses, which include failure to register for VAT.

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These businesses include Betje Enterprise in Lashibi, Zee Nails and Beauty, NAS Wigs and Cosmetics, New Place Fabric, New Place Collections, Paul Right Shoes and Bags, Celebrity Style, Jolisaeko Enterprise, Lady Dodzi Enterprise, and Zilla Home Trading Enterprise. All of these businesses are located along the Spintex Road in Accra.

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Assistant Commissioner Joseph Annan, who heads the Accra Central Area Enforcement Unit of the GRA, led the enforcement action. He clarified that Cheng Gong Ghana Limited could have its premises reopened if the company's management cooperates with authorities, provides the necessary sales records for inspection, and pays the associated penalties for VAT irregularities.Furthermore, Mr.

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Annan stated that the record books of the other businesses were confiscated to facilitate a thorough examination and assessment by the GRA. He pointed out that these businesses had violated Section 41 of the VAT Act, which mandates that businesses must register and issue VAT invoices at all times.Mr.

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Annan also revealed that some of the businesses, although registered for VAT according to GRA records, were not complying with VAT invoice issuance requirements, effectively evading VAT payments. Those individuals who were apprehended during the enforcement action will be handed over to the police for further investigation and possible prosecution.

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The Criminal Investigations Department (CID) of the Ghana Police Service will gather statements from the arrested parties, establish preemptive assessments, and require the businesses to make immediate payments as necessary.“After that the business would be rec­ommended for full audit while the police continue with its investigations,” he said.Mr.

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Annan elaborated that the Legal Department of the GRA is actively and systematically compiling prosecution dockets for all the business operators who were apprehended, in preparation for the commencement of legal proceedings.Furthermore, the GRA plans to conduct a comprehensive assessment of the financial and transaction records of the implicated businesses.

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This evaluation will encompass a reconciliation process to determine the extent of revenue loss resulting from these infractions.In accordance with legal requirements, the businesses will be obligated to reimburse the revenue that was evaded, along with the prescribed penalty amounting to GH¢50,000.In its commitment to promoting voluntary compliance, Mr.

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Annan emphasized that the GRA has been conducting regular visits to ensure that businesses previously inspected continue to adhere to the stipulated measures and tax regulations.

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