The exercise, which was intensified from last month, saw the authority further step up facility visits amidst other stringent measures to compel non-compliant corporate taxpayers to pay their taxes.

The authority has also swooped on the Night Market Economy, during which it shut down businesses that had failed to meet tax obligations.

The exercise is being carried out by four sections of the GRA offices within the Greater Accra area.

The crackdown is part of a two-year project aimed at broadening the tax base and improving compliance among night-time businesses, including nightclubs, pubs, bars, lounges and restaurants.

The other aspect is a nationwide sensitisation to encourage all classes of taxpayers to honour their obligations voluntarily.

Assistant Commissioner Joseph Adjeikwei Annan, in charge of Accra Area Enforcement, led the exercise during the day, while Chief Revenue Officer Alpha Senanu Hossoo led the Night Market Economy Project.

Briefing the media prior to the enforcement exercise in Accra last Thursday, Mr Annan said some of the infractions, among others, were failing to declare taxes, issuance of computer-generated Value Added Tax (VAT) invoices and selective issuance of VAT invoices.

Visits

In all, the GRA enforcement team led by Mr Annan visited five companies in the Accra area.

The companies are Aiven Plastics at Abofu, Achimota; Metalex Company at Alajo; Kitea Furniture and Decorations; Inter Africa and Sky Wonderland, all at Spintex.

The crackdown on the night economy operators also saw the team visit companies in Osu, Teshie, Nungua and Spintex.

The GRA officials, accompanied by the police and the media, visited six other businesses having tax compliance issues.

They are Cloud 9, Italian Boy Lounge, ?Italian Boy Chicken, ?Infinity Pub, ?Space Station Lounge and Night Club, Crisberry Pub Night Club and Restaurant and Spin Boba”.

During the night operations, the officials seized some assets of the businesses and issued them invitation notices to the GRA office to regularise their tax status.

Compliance issues

At Aiven Plastics, the team discovered that the company was carrying out selective issuance.

Mr Annan said although it sold plastic plates, there was no available record to be picked by the authority.

In that regard, he said, the company had been invited to the GRA office.  

“When he comes, we will bring in our investigative team to take charge of the situation.

They claim they do not have records, and in such situations, we have to project.

So, this is a warning to all.

When we come and you decide to hide records, your problems will be many folds,” Mr Annan cautioned.

At Metalex, the GRA team found out that the company issued receipts instead of invoices.

However, Mr Annan said, it claimed that site was for manufacturing and that the invoices were issued at its Spintex branch.

“So, we intend following up to that branch to ensure they are doing the right thing,” Mr Annan stated.

The team also visited Inter Africa, where it found out that instead of being on the electronic VAT (E-VAT), the company was not complying with the law.

“They apparently are not complying fully with the E-VAT regulations.

We chanced on some waybills and of course, waybills cannot determine whether the person is doing the right thing or not, so we went into their system to track the waybills to see how much is in there.

“We checked with the E-VAT system and we realised that the figure was far low. What that tells us is that they are doing under declaration.

So, we have invited them,” the GRA Assistant Commissioner explained.

From Alajo, the GRA enforcement team proceeded to Kitea Furniture and Decorations at Spintex.

Mr Annan said the company was also supposed to be on the E-VAT.

He said they claimed  there was a technical issue that prevented them from doing it, and that they were in discussion with the GRA office.

The Assistant Commissioner in charge of Accra Area Enforcement and his team, therefore, decided to partially seal off the place, and gave the company by the close of day last Friday to correct the anomaly or risk having its premises totally sealed off.

When the team got to Sky Wonderland at Spintex, Mr Annan said they also claimed they had registered for VAT collection but there was no VAT invoice.

“They tell us they have been to the office and could not get the invoice to buy and they were advised to carry on with sales and when the invoices are ready, they will be asked to return to obtain them,” Mr Annan said.

“We will not entertain this story, so we are picking their records.

We will go into it, access them pre-emptively and ensure they get our invoices to operate,” he added.

Prior monitoring

Mr Annan explained that ahead of the enforcement exercise, the GRA conducted an exercise earlier in the year to assess if businesses complied voluntarily with the filing and payment of taxes.

He said it was established that many businesses filed their tax returns to avoid sanctions, but never paid the liabilities.

Mr Annan said that realisation informed the deployment of more officers onto the field to study the situation.

He said the importance of the task also led to courting media support to help disseminate information about the enforcement exercise.

“This enforcement goes on unabated. It is a routine mandate, it is a national assignment and it is both night and day and throughout the week,” he stressed, adding that it would run till the authority was satisfied that businesses were complying voluntarily.

Night economy

During the night operation, Cloud 9, a popular pub on the Osu Oxford Street in Accra, was closed down and sealed off by the GRA officers who stormed the place in the early hours of Saturday.

Management of the pub had allegedly refused to honour four invitations to the GRA office to regularise its tax status, after failing to meet tax obligations for years.

“Cloud 9 is an eligible taxpayer that has been difficult to even identify whether it is registered with us.

This is the fourth time we've been here, and for the fourth time, we have sealed off its premises.

It's a taxpayer we invited to our office in 2023, but they declined, they didn't come,” Mr Hossoo said.

“This year, we've given them three invitations, but they did not attend upon our invitations.

So, top management has taken a decision that we come and seal off their premises, as an indication to other taxpayers that if you don't comply with the tax laws, GRA has the law behind it to seal off their premises,” he said.

“We realised that many businesses operate in the night, and what is interesting is that, most of these businesses that operate in the night and make money from us do not comply with tax obligations.

“We've visited about seven of them this evening, and we came across about five that were not registered.

Some are nightclubs, some are pubs, bars, lounges and restaurants. Others are registered, filing returns, but not paying.

So, it's been accumulated in the system,” he said.

Night Market Project

Mr Hossoo revealed that the crackdown was part of a two-year project aimed at broadening the tax base and improving compliance among night-time businesses, including nightclubs, pubs, bars, lounges and restaurants.

"We've reached a stage where GRA is working in the night and will ensure that taxpayers who work into the night and during the night comply with tax laws," Mr Hossoo stated.

He said the GRA, under the 24-hour economy, would ensure compliance by taxpayers who are also operating in the night.

The Coordinator of the GRA Night Market Economy Project warned that GRA would continue to enforce compliance, with penalties of up to 300 per cent for non-compliant taxpayers, adding that businesses found operating without registering or filing tax returns might face asset seizure and sale to settle outstanding tax liabilities.