GRA challenges GH¢79.65m Servestar Minwax judgment debt

The Ghana Revenue Authority (GRA) has challenged a GH¢79.65 million judgment debt awarded to Servestar Minwax (WA) Limited, arguing that the amount significantly exceeds what it acknowledges as legitimately owed.

The dispute stems from a claim involving an alleged overpayment of import duties of less than GH¢1 million dating back to 2009, which subsequently resulted in legal proceedings and a judgment in favour of Servestar Minwax.

“The crux of the dispute lies in the reconciled amount acknowledged by GRA versus the GH¢79.65 million liability awarded by the Court, which includes a 35% daily compound interest to be disbursed through Garnishee proceedings,” the GRA said in a statement issued on Wednesday, September 16.

The Authority was responding to media reports about a Garnishee Order issued by the High Court (Commercial Division 3) on July 22, directing the Bank of Ghana to disburse GH¢79,651,132 from the GRA Tax Refund Account to Servestar Minwax and its Director, Henry Manly-Spain.

GRA said it maintains that the Tax Refund Account, established under Section 69 of the Revenue Administration Act, 2016 (Act 915), is statutorily protected and designated for the payment of legitimate tax refunds.

The Authority said it has filed a Notice of Appeal against the entirety of the High Court’s ruling after its initial application for a stay of execution was denied.

It said it also intends to renew its application for a stay of execution at the Court of Appeal at the commencement of the legal year.

GRA has further applied to set aside the Garnishee Order Absolute, citing what it describes as material discrepancies in the certified judgment debt.

The Authority said the court on August 20, granted its request for a forensic reconciliation of the judgment sum and permitted the appointment of an independent auditor to review and reconcile the amount being claimed.

GRA also disclosed that its Commissioner-General had ordered an internal audit of the entire reconciliation and litigation process to identify any lapses and strengthen internal controls.

The Authority further acknowledged a petition from Mr Manly-Spain asking it not to disburse the judgment amount.

It said the position had been formally recorded before the court in the application to set aside the Garnishee Order Absolute and reconcile the judgment sum.

GRA also commended Mr Manly-Spain for publicly stating that his legitimate claim against the Authority was significantly lower than the amount awarded by the court.