Joseph Annan, Head of the Accra Central Enforcement Unit of Ghana Revenue Authority (GRA), says commissions are just like any other stream of income generation and are taxable by law.
He said businesses that have arraignments with their suppliers on commission basis are failing to meet this requirement of the law.
The Accra Central Enforcement Head said it was mandatory to pay tax on those percentages received on the volumes of the merchandise that they sell.
Mr. Annan said that commission suffers VAT (Value Added Tax), despite the price of the goods being prefixed by the supplier.
Addressing the media on the Authority’s third week of the Special Enforcement Exercise at East Legon in Accra, he said out of about 12 businesses visited and found to be defiance of the tax law, three had arraignments with suppliers on commission basis and were not paying taxes on those incomes.
“They are not even aware that they must pay VAT on the commission. So we have invited them and we have asked them to come with the agreements that they have with their supplier; we will have discussions with them and ask them to do the right thing,” he said.
He also warned that business owners who were playing hide and seek with the Authority enforcement team that it would not be discouraged from pursuing them to pay their taxes.
According to him, the GRA would not go to sleep until it achieved voluntary compliance or an automated system of tax collection.
Mr. Annan added that it was one thing for these defaulting businesses to run away from the GRA taskforce today, for the law would catch up with them tomorrow. This was as these business operators closed their shops upon seeing the taskforce.
The GRA either arrested or invited 12 business operators who, after test purchases, it was realised that they were engaged in none or selective issuance of the VAT invoices.
The suspects would be handed over to a Criminal Investigation Department (CID) officer attached to the GRA to take their statements, while the Authority would also conduct a pre-empt assessment on them, after which its legal department would take the matter up.
These defaulting businesses are Han Sen Decor City, Boost Electronics, De’lish Restaurant, Heiress & Flair, Relay Express Laundry/Dry Cleaning Services, Gifred Shopping Center, Juliejoan-Ashfoam, House of Fabrics, Dong-Chebe, About Office Ghana Limited, Fresh Angels, and Milan Star Fabrics.
