Kind attention of Hon. Dr.Kwabena Duffuor,Minister of Finance and Economic Planning

Dr.Kwabena Duffuor,Minister of Finance and Economic Planning

Please note I worked with Indgha Frozen Products Ltd., Tema from May 2007 to Dec.,2008 when I was forced to return to India due to non renewal of residence permit. The company where I was appointed was registered with Ghana Free Zone Board. They cancelled the registration as the company is not active, only two exports made, non submission of details of activity and non submission of balance sheet . I was appointed at USD 1200.00 per month salary but paid only partly, near USD 10,000.00 is still pending with them. When I am follwoing up with them they wrote to Indian high Commision some false and fabricated statements about me. Their motive is to stop me from demanding the amount. this matter I have taken up with the high commission and the company. I wish to request you to look into the matter and help me in getting my legal dues.

I would also like to informed the irregulaities that are going in the company for a long time which ultimately providing loss to your national govt. as well as the people. Please take action after investigation.

I
IRS :
1. Verification of book of accounts for last five years and tally the same with the balance sheet submitted. The figures mentioned in balance sheet will not match with the books and also your investigation team will not get any proper supporting vouchers, sales invoices or purchase invoices;

2. They have five Companies headed by Mr. L.K. Gulati and all has inter transactions in cash as well as through banks, but their was no reflections in their balance sheet. They have not shown any company as Branch. As per tax rule LTD. companies can not have inter transactions, otherwise they will be treated as one unit and will tax accordingly. But they are paying tx in different rates and some are exempted;

3. The sales figure mentioned in balance sheeit will not match with their book of accounts or the VAT return that they have submitted. this will proof that they have not disclosed full sales in balance sheet to reduce the tax laibility;

4. Balance sheet submitted and their books should be checked with the vouchers available as the company will not be able to produce the vouchers;

5.Companies imports or exports details IRS should collect from the customs deptt. and then reconcile with their books. You will find that neither company has disclosed all the imports or the exports in their books.Therefore Companies foreign transactions will be questioned;

6.Salary pasid to Expartriates were not booked except in 2007.Amounts were paid by Company in USD, in voilation and with out permission from Bank of Ghana .Salaries paid to expartriates are shown much less in IRS monthly deduction returns to save tax;

7. Their is no capital investments from the early years of business. proper scrutiny of capital a/c should be undertaken by IRS;

8.Intertransaction through banks in between all the sister companies will establish that all are one unit and shown seperately just to avoid tax. All the companies should be merged and tax @ 30%;

9. If You add up total material purchase less stock in hand you will get the stock more than the sales shown. This is because the closing stock is not correct or some sales are their which has not been included. This is upto IRS to decides;

10. No balance sheet has been prepared and submited for Indgha Frozen Products Ltd. till date.

VAT :
1. Sales figure as disclosed in monthly returns will not match with the books or the balance sheet, intentionly to avoid payment of vat theiron;

2. In case of Indgha Agro Ent Ltd & S.K. Agro Exports Ltd. sales shown in vat return and balance sheet should to verified from the actual exports documents from customs dept.;

3.Remittance received in compare to export sales should be verified as most of the payment against exports were not received in Ghana, giving loss of foreign currency to Ghana Govt. and also claim vat refund in excess;

4.payment received in foreign currency or GHc. transfered to other companies without reflecting in sales.

5. Local sales were done with out invoice charging VAT on it and shown as broken yam sales in balance sheet.

CUSTOMS :
1. Raw materials imported giving declaration for manufacturing paying 50% less customs duty, some of which were sold localy without any invoice and should be treated as trading which is against the law. one party POLY, Accra, who has paid GHc. 30,000.00 has taken raw materials directly without even entered in customs warehouse;

2. Duties against the raw materials were not paid before sale of finished products, which should carry penalties and interest;

3. No stock book maintain on day to day transaction of materials in customes bonded warehouse.

I wish to request you to order an investigation through proper authority uunder your control, find out the truth and punish the defaulter. I have also news that they are closing down the factory and preparing to leave the country to avoid such investigation.

mrinmoy chakravorty

[email protected]