Home / Business / KPMG Report Exposes SML’s GH¢31.88m Tax Debts to GRA

KPMG Report Exposes SML’s GH¢31.88m Tax Debts to GRA

By: Ruth Tang

President Akufo-Addo’s release of the full KPMG report on Wednesday, May 22, sheds light on Strategic Mobilisation Ghana Limited’s (SML) tax liabilities to the Ghana Revenue Authority (GRA). Details of the report by KPMG has it that, SML owes the GRA a total of GH¢ 31.88 million for unpaid taxes spanning eight months of service provision.

This amount includes accumulated interest, estimated at GH¢ 18.50 million as of January 31, 2024. The report reveals that SML failed to fulfill its statutory obligations by neglecting to file tax returns or remit owed taxes to the GRA, despite being alerted to the discrepancy.

Between September 2020 and April 2021, according to the report, SML received a payment of GH¢13.38 million without VAT and WHT deductions, contrary to GRA’s standard practice. SML failed to file returns or remit taxes, resulting in an estimated total liability of GH¢31.88 million, prompting GRA to demand settlement.

“No deduction of VAT by GRA for an 8-month period on payments 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 GHÇ13.38 million. This contradicts GRA’s standard practice of deducting such taxes for payments to SML between 1st June 2020 and 31st 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 GHÇ18.50 million owed by SML to GRA as of 31 January 2024. Consequently, the total liability incurred by SML amounts to
GH¢31.88 million.
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.” Part of the report read.

The investigation by The Fourth Estate uncovered irregularities in contracts between SML, the Ministry of Finance, and the GRA, prompting President Akufo-Addo to commission a comprehensive audit by KPMG. Despite SML’s claims that its services were effectively addressing revenue losses in the petroleum sector, evidence presented by The Fourth Estate showed otherwise.

Despite these revelations and other admitted falsehoods, Minister of Finance Ken Ofori-Atta initiated a process in 2023 to expand SML’s contracts to include the gold and oil producing sectors, significantly increasing the annual contract sum to over $100 million.

About Adoa News

Check Also

Over 86,000 Passports remain uncollected

Over 86,000 passports remain uncollected at the Passport Office, the Senior Government Advisor on Public …

Leave a Reply

Your email address will not be published. Required fields are marked *