GRA gives Electrochem 7 days to settle GH¢8.6m tax debt or face sanctions

Ghana Revenue Authority (GRA) has given Electrochem Ghana Limited, a subsidiary of the McDan Group of Companies, a seven-day ultimatum to settle an outstanding tax liability of GH¢8.6 million or face further enforcement action. This directive follows several unsuccessful engagements with the salt mining company over efforts to recover the outstanding amount. On Wednesday, July 8, officers from the Compliance Unit of the GRA visited the company's premises at Ada and sealed off its administration block as part of measures to compel payment.

Joseph Annan, the Accra Area Enforcement Manager of the GRA, stated that the Authority would be forced to restrict access to the entire mining facility if the company fails to honor its tax obligations within the seven days. He explained that the outstanding liability dates back to 2021, with several demand notices and reminders issued. Mr. Annan said, "We have decided to take this action because the initial debt was about GH¢8.8 million, including interest accumulated over the period. However, upon our arrival, we realised what goes on here, and after some presentation from the managers on site, we were given a cheque of GH¢200,000, which, although it is woefully inadequate, we had to accept." The GRA decided against completely shutting down operations to allow the company to continue working and raise funds. Mr. Annan added, "We therefore decided to seal the administration block and give them the opportunity to work in order to raise the remaining balance within the next seven days."