Business

Issuing fake VAT invoice, others: Directors of businesses face 5-year prison term – GRA

Beginning October, 2022, directors of registered businesses across the country issuing fake invoices, receipts and also failing to file their annual tax returns could face over five years in prison.

According to the Head of Domestic Tax Revenue Division at the Ghana Revenue Authority, Edward Gyambrah, the authority has already started prosecuting some businesses and will continue to descend on others who fail to do good business with customers.

Section 41 (11) of the VAT Law states that businesses that fails to issue a tax invoice through a Certified Invoicing System contrary to subsection 2 faces sanctions include conviction to a fine of not less than 1000 penalty units or to a term of imprisonment of not less than two years and not more than five years or to both, among others.

Engaging the media, Mr. Gyambrah said, his outfit is bent on blocking revenue leakages within the economy, to rope in more revenue for the country.

“Under no circumstance should any business ask: do you need VAT invoice or normal invoice that question, amounts to suppression of tax; an action which is criminal under the Revenue Administration Act. We have started prosecuting people and they could face some prison terms”.

“We are already out there in disguise, making purchases and requiring invoices, all in a bid to detect and track non-issuance and fake issuance”, he explained.

“Those who have failed to file their annual tax return will also not be left out. We will go after them and prosecute them”, Mr. Gyambrah charged.

The Finance Minister, Ken Ofori-Atta in the Mid-Year Budget Review said an electronic invoicing system (e-VAT) will be rolled out to enable GRA have a real-time view of VAT- related transactions for the collection of the tax in the 4th quarter of 2022.

SourceJames Eshun

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