28.12.06

White Chapel entangles itself in tax evasion


The Value Added Tax (VAT) Service on Wednesday closed the White Chapel Store in Accra again for defaulting in 2.4 billion cedis tax payment for three years. The Service had closed the Store last week and secured the place with its locks and keys but the store was illegally opened and doing business. Business was in full swing when a combined team of officials of the Enforcement and Debt Management Unit of the VAT Service and Police personnel arrived at the store at 1600 hours.
The officials could not locate the Director, Mr Daniel Ofori, and the Police arrested and handcuffed Richard Ohemeng, a Sales Assistant who they said was not co-operating with them on directing them to those responsible for the store's operation.
Exchanges between the police and other personnel in the Store intensified outside the White Chapel Building, when a mob heckled the tax officials with the intent of releasing Ohemeng but that was to no avail. The crowd destroyed a file of the VAT officers, poured water on the police personnel, attempted to seize the cap of an officer and tried to destroy the camera of GTV crew but a re-enforcement soon arrived and restored order.
The police picked some identifiable troublemakers in the crowd and sent them to the Greater Accra Regional Police Headquarters. Mr. Henry Sam, Revenue Official of the Debt Enforcement and Management Unit of the VAT Service, who invoked sections 34 and 70 of the VAT Laws said the Service would be compelled to auction the goods in the store to defray the amount in default after the 14 days' grace period after the closure.
He said negotiations with the management of the store to pay its VAT debt had not been fruitful, adding that the VAT Service was compelled under the circumstance to close the store. Mr Sam warned companies and other stores who had defaulted in the payment of their VAT returns to take a cue from the action.
He could however, not tell total number of organisations in arrears and the total indebtedness to the Service.GNA

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