The Ghana Revenue Authority (GRA) has given Electrochem Ghana Limited, a subsidiary of the McDan Group of Companies, a seven-day ultimatum to settle an outstanding tax debt of GH¢6.8 million or face tougher enforcement measures.
The directive follows what the GRA described as several unsuccessful attempts to recover the unpaid taxes from the salt mining company.
On Wednesday, July 8, officials from the GRA’s Compliance Unit stormed the company’s premises at Ada and sealed off its administration block as part of efforts to compel payment.
Speaking to journalists after the exercise, the Accra Area Enforcement Manager of the GRA, Joseph Annan, warned that the Authority would shut down access to the entire mining facility if the company fails to clear the outstanding debt within the seven-day grace period.
According to him, the tax liability dates back to 2021, despite several demand notices and reminders issued to the company over the years.
“The initial debt stood at about GH¢8.8 million, including accrued interest. However, after discussions with the management on site, the company presented a cheque for GH¢200,000. Although the amount is woefully inadequate, we accepted it as part payment,” Mr Annan said.
He explained that the GRA deliberately refrained from shutting down the company’s operations entirely to allow it to continue generating revenue to settle the outstanding balance.
“We decided to seal only the administration block while allowing operations to continue so the company can raise the remaining balance within the next seven days.
“If they fail to pay after the seven-day deadline, our next visit will not be friendly. We recognise that this is an indigenous company and we want to protect local businesses, but the state also needs revenue to finance critical national projects,” he added.
Officials of Electrochem appealed to the GRA enforcement team to exercise restraint, assuring them that the company was making efforts to mobilise funds to settle the outstanding tax obligation.
Wednesday’s exercise forms part of the GRA’s intensified nationwide revenue enforcement campaign aimed at improving tax compliance and boosting domestic revenue mobilisation as the Authority works towards achieving its annual revenue target.
