The Managing Director of Capstone Oil Limited, Daniel Kojo Kumah, has been sentenced to six months in prison after failing to fulfill his tax obligations amounting to GH¢20,676,902.07.
Kumah was convicted on Monday by the Criminal Court 4 in Accra, presided over by Justice Comfort K. Tasiame.
His sentencing follows a legal battle with the Ghana Revenue Authority (GRA), which accused him and his company of failing to pay several levies and taxes on petroleum products.
According to court records, Capstone Oil Limited had accumulated unpaid taxes and levies totaling GH¢24,526,592.27 as of April 2021.
These included the Special Petroleum Tax, Energy Debt Recovery Levy, Road Fund Levy and Energy Fund Levy.
After negotiations, Kumah was able to settle one-fifth of the debt, paying GH¢3,849,690.20 through a pre-bargaining arrangement.
However, the remaining GH¢20,676,902.07 remained unpaid, leading to his conviction.
The Ghana Revenue Authority, which filed the complaint against Kumah and Capstone Oil Limited, stated that multiple attempts were made to recover the outstanding debt.
The company initially requested a rescheduling of its payments, but the GRA declined the request due to previous defaults on similar arrangements.
In a bid to enforce tax compliance, the GRA issued third-party debtor notices to the company’s bankers, seeking to recover the funds directly from its accounts.
However, this enforcement action did not yield any results, prompting legal proceedings against the company and its managing director.
Kumah was found guilty of failing to pay tax, contrary to Section 80 of the Revenue Administration Act, 2016 (Act 915).
