GRA shuts down Chinese-owned cement factory over GH¢700 million tax evasion

The Ghana Revenue Authority has shut down a Chinese-owned cement factory, Sol Cement at Tema for evading taxes of over GH¢700 million.

According to a report by GHOne on Twitter, over 300 workers have been sent home.

Checks by GhanaWeb Business from the company’s website have also revealed that the firm is temporarily closed.

In July this year, the Bureau of National Investigations (BNI) in collaboration with the Ghana Revenue Authority (GRA) spearheaded a historic operation that resulted in the arrest of executives of Wan Heng Ghana Ltd., a Chinese-owned cement manufacturing company.

The company’s managers were taken into custody due to alleged tax violations totalling GH¢500million. The joint operation follows a tip-off from the Tema Medium Taxpayer Office of the Ghana Revenue Authority, as officials noticed discrepancies in monthly filings for the National Health Insurance Levy (NHIL) and Ghana Education Trust (GET) Fund.

During the subsequent joint operation, police and military personnel tried to gather additional evidence from Wan Heng Ghana Ltd. – known for manufacturing Sol Cement; but the company’s management refused to cooperate with authorities investigating alleged tax evasion, leading to their detention by the military personnel. The authorities have also locked up the premises pending an outcome of the ongoing probe.

Documents obtained from the GRA indicate that Wan Heng Ghana Ltd., between 2018 and 2021, evaded approximately GH¢500million in value added tax and (VAT) and income tax payments alone.

Despite importing sufficient clinker to produce and sell GH¢1.36billion worth of cement, based on Ghana Standards Authority (GSA) standards, the company declared a mere GH¢223million in revenue – significantly under-declaring their earnings by 84 percent. The GRA estimates that this led to a loss of GH¢490million in taxes to the state.

source: Ghana Web