The Ghana Revenue Authority (GRA) has charged Everyday Tissue Manufacturing Ghana, producers of toilet rolls, for evading tax and failure to issue the GRA's Value Added Tax Invoice.
The company, located at Kwame Wetei at Awutu Breku, was charged for using books sponsored by government for the junior high schools and senior high schools, which were strictly not for sale to produce toilet rolls.
The police have, therefore, arrested three officials of the company for using state textbooks as raw material to produce toilet roll for sale.
They are Ma Fui Jiuming, Manager of the company, Ma Mang, sales manager, and Prince Andoh, company's interpreter, assisting the police in investigations.
The exercise forms part of an enforcement tour carried out by the GRA Special Revenue Mobilisation Taskforce at Awutu Breku in the Central Region to clampdown on tax defaulters.
Mr Henry Sam, Coordinator, GRA Special Revenue Mobilisation Taskforce, briefing the press, said the exercise was instigated by GRA Informant and Counter Intelligence Unit.
He said: "The books, instead of going to the classroom to help the students with their studies, are rather recycled as raw materials, even though they are not outdated, to manufacture toilet rolls".
The Taskforce did not find any tangible records by the company such as books of account and this is against section 27 of the Revenue Administration Act, which mandates businesses to keep and maintain proper records.
Mr Sam said the Taskforce had retrieved some of the books as exhibits and confiscated some property of the company including four vehicles covered with the Commissioner General of GRA seal.
He explained that the vehicles would be valued and then weighed against other records like the company's bank statements and electricity bills, to give the Authority an idea of the cost in assessing the company's tax liability.
"The Commissioner General of the GRA will use his best judgement in assessing the tax liability and any tax short fall," he said.
Mr Sam said the Police would handle the criminal aspect of the destruction of government textbooks while the Authority dealt with the revenue issue.
"We want genuine investors who will comply with the tax laws and contribute to the growth of the economy, not people who will rip this country of its resources and benefit at the expense of the state and its citizens."