KPMG Report: SML owes GRA GHC31.88m in taxes
23rd May 2024
The full report by audit firm, KPMG on the contract between the Strategic Mobilisation Limited (SML) and the Ghana Revenue Authority (GRA) released by President Nana Addo Dankwa Akufo-Addo on Wednesday, May 22 has revealed that SML owes GRA a total amount of GH¢31.88 million.
The report indicated that from September 1, 2020, to April 30, 2021, a bulk payment to SML covering invoices for eight months, did not have Value Added Tax (VAT) and Withholding Tax (WHT) deductions amounting to GH¢13.38 million.
It stated that this contradicts GRA’s standard practice of deducting such taxes for payments to SML between June 1, 2020 and August 31, 2023.
Again, the report disclosed that the SML failed to fulfil its statutory obligations by neither filing returns nor remitting the taxes to GRA.
As such it said that the accrued interest on the tax liability was estimated at GH¢18.50 million owed by SML to GRA as of January 31, 2024.
“During the period from 1 September 2020 to 30 April 2021, a bulk payment to SML covering invoices for an eight (8) month period, did not have VAT and WHT deductions, amounting to GH¢13.38 million. This contradicts GRA’s standard practice of deducting such taxes for payments to SML between 1 June 2020 and 31 August 2023.”
“Additionally, 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. Consequently, the total liability incurred by SML amounts to GH¢31.88 million,” the KPMG report stated.
It further indicated that at the time of the firm’s review, it noticed the discrepancy and informed GRA, leading to their subsequent communication with SML, demanding a settlement of the outstanding amount.
“At the time of our review, we noticed the discrepancy and informed GRA, leading to their subsequent communication with SML, demanding settlement of the outstanding amount,” it said.