The Ghana Revenue Authority (GRA) has given Electrochem Ghana Limited seven days to settle an outstanding tax debt of GH¢8.6 million or risk the closure of its operations.
The ultimatum follows an enforcement exercise by officials of the Authority on Wednesday, July 8, during which the company’s administrative block was sealed off over the unpaid tax obligations dating back to 2021.
Speaking to the media after the operation, Assistant Commissioner in charge of Accra Central Enforcement, Joseph Adjeikwei, said the company had been served with several notices over the years, including an immediate demand notice issued on January 7 and a final demand notice served in February this year.
“What brought us here is a debt that they are owing since 2021 and the amount involved is GH¢8.6 million and we have served them a number of notices and the latest one was served in February. That is the final demand notice,” he said.
Mr. Adjeikwei explained that although GRA had initially intended to shut down the entire facility, the Authority decided against sealing the main gate after management outlined challenges facing the company and the potential impact on workers and the surrounding community.
“This is an indigenous Ghanaian company and we need to protect them. But we still need our money,” he stated.
According to him, the Authority opted to seal only the administrative block while allowing production and commercial activities to continue temporarily to enable the company to mobilise funds to settle part of the debt.
“What we have done, by way of some concession, is to seal off the administrative block. Ordinarily we would have sealed off the main gate,” he explained.
He disclosed that Electrochem had made an immediate payment of GH¢200,000, which he described as inadequate compared to the outstanding debt.
“Immediately they are paying GH¢200,000, which is woefully inadequate. But like I always say, a bird in hand is more than nine in the bush. So we are taking it,” he said.
The Assistant Commissioner warned that the company has only seven days to either settle the arrears or engage the Authority’s leadership on a payment arrangement.
“We are giving them seven days to do the needful or come to the head office and have some engagement with our big men. Beyond that, we come back and seal off the main gate so that there wouldn’t be any access at all to any of them, including even their customers,” he warned.
Mr. Adjeikwei acknowledged that Electrochem had cited recent flooding and operational challenges as factors affecting its ability to pay but stressed that the debt predates those events.
He further revealed that the GRA had exhausted all administrative and engagement processes before resorting to enforcement action.
“We have always tried to be friendly to taxpayers. So when you see us out here like this, then that means we’ve exhausted all the friendly approaches to our work,” he stated.
The Assistant Commissioner also used the opportunity to caution businesses that file tax returns without making the corresponding payments.
Mr. Adjeikwei warned that companies that continue to ignore their tax obligations should expect stricter enforcement actions from the Authority.
