GRA locks up ElectroChem’s administrative block over GH¢8.6 million tax debt

The Ghana Revenue Authority (GRA) has sealed the administrative block of ElectroChem Ghana Limited over an outstanding tax liability of GH¢8.6 million.

The Authority has, however, granted the company seven days to settle the debt or agree on a payment arrangement before further enforcement action is taken.

Mr Joseph Adjeikwei Annan, Head of Enforcement at the GRA’s Accra Central Office, said the Authority undertook the exercise after several unsuccessful attempts to recover the debt through demand notices and engagements with the company.

He said GRA served ElectroChem with an immediate demand notice on January 7 and a final demand notice in February this year.

Mr Annan said although the Authority had intended to restrict access to the entire premises, it decided to seal only the administrative block after discussions with the company’s management.

He explained that the decision was taken because ElectroChem, an indigenous Ghanaian company, employed many workers whose livelihoods could be affected by a complete shutdown of operations.

Mr Annan said the company made an immediate payment of GH¢200,000, which the Authority accepted as a demonstration of commitment, although a substantial tax liability remained outstanding.

He said the concession would remain in force for seven days, during which the company was expected to settle the debt or engage the GRA headquarters on an acceptable payment arrangement.

“Beyond the seven days, if they fail to honour their obligations, then of course we will enforce,” he said. “Once you seal off the main gate, there wouldn’t be any access to the company.”

Mr Annan warned that failure to comply would result in the sealing of the company’s main gate, preventing access to the premises by workers, customers and management.

He said the exercise should serve as a warning to taxpayers who filed returns but failed to remit the corresponding tax payments to the State.

Mr Annan said the Authority had observed an increasing trend of businesses declaring tax liabilities to avoid penalties without making the required payments.

He urged taxpayers with outstanding obligations to regularise their tax affairs before enforcement action was initiated, adding that the GRA remained open to engagement but would enforce the law where necessary.

Mr Annan said the Authority did not target specific taxpayers but routinely reviewed records to identify businesses with outstanding tax liabilities for enforcement.

When the Ghana News Agency visited the company’s production site with GRA officials, operational activities were ongoing and some workers were at post.

Management of ElectroChem Ghana Limited declined to comment on the matter.

GNA