Ghana Revenue Authority (GRA) Commissioner-General Rev. Dr. Ammishaddai Owusu-Amoah has declared that the Authority will support financially troubled businesses in their efforts to recover.

Despite the fact that the tax authority is ready to carry out the legal compliance measures, he stated that the main objective is to assist in the resuscitation of businesses and guarantee continuous production, particularly in light of the recent economic challenges.

“The fact is that whatever compliance measures are available in the law, GRA is ready to implement them to the letter. But while we are committed to enforcement, we also aim to revive companies and ensure continuous production,” the Commissioner-General stated during a working visit to B5 Plus Limited – a steel manufacturer located in Tema.

He added: “Whether small or large, we are ready to ensure the collection of taxes in full. But at the same time, we are also concerned that production should continue and people not be laid off”.

Sol Cement Shut Down by GRA for Unsettled Tax Debt Exceeding GH¢700 Million; VAT Violations Uncovered in 12 Accra Businesses in August.

In August, the Ghana Revenue Authority (GRA) closed down Sol Cement for failing to meet tax obligations, revealing an outstanding tax debt of over GH¢700 million. Additionally, VAT infractions were identified in 12 businesses in Accra, ranging from failure to register for VAT to non-issuance of VAT documentation.

Despite these actions, the GRA emphasized its focus on supporting struggling companies for a potential turnaround, considering closures as a last resort.

The GRA has established a revenue target of GH¢106 billion, with the Customs Division aiming to collect GH¢28.5 billion in 2023. A total of 93 businesses in the capital have been identified for enforcement and compliance efforts this year.

The United Steel Company story

As of 2020, United Steel Company Limited carried an outstanding tax liability principal of approximately GH¢149 million, with accrued interest and penalties exceeding GH¢400 million dating back to 2018.

The company also had outstanding debts to banks and other creditors.

In collaboration with financial institutions, the Ghana Revenue Authority (GRA) engaged the services of an administrator to assume control of the factory.

“We then placed the factory for sale and advertised it in the papers; we succeeded in getting B5 Plus to buy the company,” the GRA’s Commissioner-General recalled.

“And after they bought the company, they paid the tax liabilities in full because the administrator had then applied for and took advantage of the waiver of interest and penalties. And so, the GH¢149million we had been chasing from 2020 was fully paid in 2023,” he added.

Explaining further, he said: “The factory has also, as you saw today, been completely put back on its feet and is able to produce; and we’ll be getting over GH¢100million annually in terms of taxes. We are more interested in seeing companies grow to meet their tax obligations. So the mentality or sad notion that GRA is only interested in getting the money, and not so interested in whether the company will survive or not is not true”.

US$35million invested to revamp the factory

Mukesh Thakwani, Chief Executive Officer of B5 Plus Limited, commended the favorable domestic investment environment and emphasized the numerous opportunities available.

He revealed that his company has already injected over US$35 million into the revitalization of the factory. Furthermore, he stated that with the planned expansion of the production line over the next two years, an additional investment of US$10 million is on the agenda.

“It has been quite challenging for us. What we expected and what we found on the ground was quite different; but a lot of credit goes to the entire team for being positive and optimistic, and we are really looking forward to the future.

“I think this is one of the reasons that though we are working 24 hours it has still taken six months – and it will take another one and a half months for us to start this plant. Our target is that before December we should at least be able to make some trials, so that from next year we are able to run this plant successfully and make everyone proud,” Mr. Thakwani said.

The company presently employs 420 workers, but this number could soon increase to over 500 as additional product lines are introduced.

“We are not only targetting Ghana and the West Africa sub-regional market, but the whole Africa; we want to take advantage of AfCFTA,” he added.