More details emerging from the full KPMG audit report on the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Limited (SML) have revealed that SML failed to pay taxes to the tune of GHC31.88 over eight months of service provision.
Also, this outstanding amount includes accrued interest, estimated at GHC18.50 million as of January 31, 2024.
The reputable audit and accounting firm further noted that SML has failed to fulfill its statutory obligations by neglecting to file its tax returns or remit the owed taxes to the GRA.
According to KPMG, the deviation from standard practice occurred between June 1, 2020, and August 31, 2023, during which the GRA typically deducts taxes for payments made to SML.
“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.”
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KPMG 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 a settlement of the outstanding amount,” excerpts of the report captured on page 32 read.
Relatedly, the respected audit firm further revealed that SML only submitted eight out of 15 reports contracted by the GRA under the Transaction Audit Services agreement between June 2018 and October 2019.
According to KPMG, transaction audit services involve the validation of the assigned classification and valuation of imported goods for purposes of determining the importer’s declaration and the related taxes to be paid.
“Between 1 June 2018 and 2 October 2019, the transaction audit services required SML to conduct a reassessment of the classification and valuation of import transactions using the CCVR data and report the outcome to the Post-Clearance Audit (“PCA”) unit of GRA for the purpose of identification of mis-classification and mis-valuation by the GRA team.
“For this period, SML submitted eight (8) out of the expected fifteen (15) reports. GRA officials, however, could not confirm that the seven (7) outstanding reports were received, to evidence SML’s performance of the service,” the report said.
