The Ghana Revenue Authority on Thursday, May 20, 2021, began an exercise to take on Oil Market Companies (OMCs) that have defaulted in honouring their tax obligations to the state.
The exercise saw the GRA partially possessing and locking up assets of some seven oil marketing companies who, cumulatively, owe the state over GHS100 million in taxes.
The taxes are consumer levies slapped on petroleum products that should have been remitted to the GRA within 21 days plus 4 days grace period after the sale of the products.
Some of the OMCs according to the GRA have failed to make the remittances since 2019.
Engaging the media as part of the tax enforcement exercise, Chief Revenue officer with the debt management and compliance enforcement unit of GRA, Nathaniel Nii Okai Tetteh said even though the GRA does not take pleasure in attaching assets of businesses and locking them up, it is compelled to do so to ensure the businesses are tax compliant.
“We sought to engage some of these companies to find an amicable way of settling their debt. It is when that approach fails that the authority comes forth to attach their assets and possibly auction them within ten days,” Mr. Nathaniel Nii Okai Tetteh told the media.
Going forward, the Ghana Revenue Authority has stated that, OMCs will have to make an upfront payment of consumer taxes and levies on petroleum products they lift from bulk suppliers.
The move, according to the Authority, is to control the situation that sees OMCs fail to remit consumer taxes charged on the products sold at the pumps.
The Association of Oil Marketing Companies said it endorsed the new directive by the GRA.
Board Chairman of the Association, Henry Akwaboah told Citi Business News that the association made the suggestion to the GRA as a more efficient means for retrieving the taxes and levies.