Business

GRA arrests managers of 3 hotels for VAT infractions

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Managers of three hotels in Dansoman and North Kaneshie in the Greater Accra region have been arrested by the Police for failing to issue Value Added Tax (VAT) invoices.

The facilities are namely, Legacy Hotel, Kegali Hotel, and Mascot Hotel. The fourth company, Silver Clouds, is a wholesale supermarket that issues non VAT invoice.

They were apprehended when officials of the Ghana Revenue Authority embarked on its ‘Test Purchase Exercise’.

These managers are expected to appear in court to face the law.

According to Accra Regional Head of Enforcement at the GRA, Assistant Commissioner, Joseph Annan these infractions contradict the VAT law, hence the operation to arrest all defaulting entities in the capital.

He indicated that Legacy Hotel and Kegali Hotel had registered for the VAT invoice but are not issuing it at the time of the ‘Test Purchase Exercise’.

In the case of the Supermarket, Silver Clouds, the company is issuing the VAT invoice selectively to customers, an act that contradicts the VAT law.

“We went to Legacy Hotel at North Kaneshie but is not issuing the VAT invoice. So we have picked one of the employees up including some documents so we can do an assessment that is linked to the infractions”.

The same can be said about Kegali around Sakaman Estate and Mascot Hotel at the Dansoman Exhibition area where the managers showed us the invoice. But they were also practicing the selective system and we have to pick one of the staff for questioning and some documents as well”, Mr. Annan said.

He however pointed that there had been an improvement in the VAT collection as a result of the exercise.

“So, we want to resume again [distress action] with the media so that we can mobilise revenue for the state”.

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