The Special Revenue Mobilization Task force of the Ghana Revenue Authority (GRA) has shut down the Mork Impression Limited located in Mamprobi in Accra.
According to the GRA, its investigations revealed that the company had over declared its input taxes which eventually reduced its VAT returns.
The GRA indicated that the company’s VAT and NHIL returns had declined by GH¢441,101.80.
A notice of levy of distress under Section 34 (2) of the VAT Act 1998 and Schedule 6 of the Income Tax Act 2013 (870) and Schedule 7 of the Income Tax Act 2015 (896) ordered the mobilization unit to “collect and recover the sum of 441,101.80 due and owing for tax/penalty/interest from Mork Impression Limited, tax debtor of Accra and for the recovery of this sum.”
It added, “I authorize you with the aid if necessary of the police, to levy this sum forthwith by distress together with the expenses, costs and charges of and incidental to the execution of this warrant and keeping of the distress on all distrainable things.”
The implication for the company as prescribed by the law is a possible sale of the properties that have been distrained.
Section 34 (7) of Act (546) and Schedule 6 of VAT Act 2013 Act 870 and Schedule 7 of Income Tax Act 2015 (Act 896) on distress levies states that, “all distrainable things and that the property distrained may be sold if the amount due in respect of the tax, interest or penalties and the cost and charges of and incidental to the distress are not paid within fourteen days of the distress.”
By: Pius Amihere Eduku/citibusinessnews.com/Ghana