Attorney-General and Minister for Justice Dr. Dominic Ayine has disclosed that the Ghana Revenue Authority has confirmed that GH¢22 million in taxes were avoided in the District Roads Improvement Programme agreement involving J.A. Plant Pool Limited.
Speaking on Newsfile on Saturday, January 10, Dr. Ayine stated that the GRA’s confirmation proves beyond a shadow of a doubt that the DRIP contract involves tax evasion.
He clarified that although his office first calculated the amount of tax evaded at GH¢38.7 million, it lacked the authority to reach a definitive conclusion, therefore in July of last year, it formally asked the GRA for confirmation.
He states that the GRA only verified last week that GH¢22 million in taxes had, in fact, been avoided, enabling him to talk with confidence about the situation.
Dr. Ayine disclosed that, despite not being eligible for such exemptions, the company had acknowledged in writing that certain goods imported under the DRIP arrangement were warehoused after being cleared as tax-exempt.
He emphasised that the firm is still accountable for its actions notwithstanding this admission.
He clarified that regardless of any later justifications, tax evasion has taken place when products are imported into the nation without the required levies paid.
In addition to the proven GH¢22 million tax evasion, the Attorney-General revealed that the purported US$2 million overpayment associated with the DRIP contract has been identified and would be investigated.
He insisted that the issue is not an administrative error, rejecting accusations that the overpayment was the consequence of a clerical error.
In response to a statement released by J.A. Plant Pool Limited last year, which denied claims of overpayment, tax evasion, and over-invoicing in the DRIP contract, Dr. Ayine made these remarks.
The business insisted that all imports were correctly declared and handled through bonded warehouses, attributing the US$2 million disparity to a clerical error.
Dr. Ayine reaffirmed, however, that the government’s position is supported by evidence and that investigations have been carried out.
He insisted that he stands by his previous remarks and said that if the business doesn’t comply with the requests resulting from the results, legal action is still an option.
As the government seeks responsibility and the recovery of funds associated with the DRIP program, the disagreement continues to garner public attention.
Source: newsthemegh.com