A special audit ordered by the Revenue Agencies Governing Board (RAGB) into the accounting records of AZAR Chemicals Industries Limited, one of the leading producers of paint products in the country, has revealed tax evasion amounting to ¢11.795,792,529 between 2002 and 2004.
The amount represents value added tax (VAT) default of ¢4,693,493,073 and corporate tax of ¢7,156,299,546. Penalties accruing from the amount during the period are also estimate to cost several billions of cedis.
The audit firm contracted to undertake the audit, Paulphilred Enterprise, chaired by Mr P.C. Appiah-Ofori, a Member of Parliament (MP), has, therefore, recommended “the prosecution of the directors of the company for the fraudulent practices they have deliberately perpetrated against Ghana, resulting in heavy financial losses to the state.”
According to the report, which has been copied to the commissioners of the VAT Service and the Internal Revenue Service (IRS), the managing director, the financial controller and the chief accountant, all of AZAR Chemicals, the prosecution of the company's directors would serve as a deterrent to other companies committing similar crimes against the state.
But the solicitors of the company said although they had received the report, they had raised serious reservations about the competence of the audit firm.