Monday, 17 June

KPMG report: SML owes GRA ¢31.88m in taxes, accrued interest

Business
GRA

The full KPMG report released by President Akufo-Addo on Wednesday, 22 May 2024, has uncovered that Strategic Mobilisation Ghana Limited (SML) owes the Ghana Revenue Authority (GRA) GH¢ 31.88 million in unpaid taxes for eight months of service provision.

This debt also includes accrued interest, estimated at GH¢18.50 million as of January 31, 2024. 

The report by the accounting and advisory firm revealed that SML has neglected its statutory obligations, failing to file tax returns or remit owed taxes to the GRA.

The lapse occurred between June 1, 2020, and August 31, 2023, a period during which the GRA typically deducts taxes for payments made to SML.

KPMG's report noted that it alerted the GRA to this discrepancy, leading the Authority to issue a demand letter to SML. 

Despite this intervention, SML has yet to settle its outstanding tax liabilities.

"During the period from 1 September 2020 to 30 April 2021, a bulk payment to SML covering invoices for an eight-month period, did not have VAT and WHT deductions, amounting to GH¢13.38 million", the report revealed. 

It added: "This contradicts GRA's standard practice of deducting such taxes for payments to SML between 1 June 2020 and 31 August 2023."

Additionally, the report said: "SML failed to fulfil its statutory obligations by neither filing returns nor remitting these taxes to GRA." Pursuant to Section 71(1) of the RA Act, the accrued interest on the tax liability is estimated at GH¢18.50 million owed by SML to GRA as of 31 January 2024, the audit report pointed out. 

Consequently, it computed the total liability incurred by SML to be GH¢31.88 million.

"At the time of our review, we noticed the discrepancy and informed GRA, leading to their subsequent communication with SML, demanding a settlement of the outstanding amount," portions of the report said.

Source: Classfmonline.com