Vodafone assets to be sold within 14 days over tax default

The Ghana Revenue Authority (GRA) has served notice that it sell off the assets of National Communications Backbone Company (NCBC) within the next fourteen days should the company fail to provide proof to benefit from capital gains tax reliefs.

The NCBC is a subsidiary of Vodafone Ghana.

The NCBC is reported to have defaulted in capital gains tax to the tune of GH¢9,018,000. The Ghana Revenue Authority also issued a distress order on Tuesday, June 20th, 2017.

According to the Head of Special Revenue Mobilisation task force at the GRA, Henry Sam, they were forced to issue the distress order because the company failed to comply with its capital gains tax obligations from September 2016 till date.

“There have been series of engagements with the NCBC which is a subsidiary of Vodafone…in their financial statements; they have taken away the capital gains tax. But in doing so, there are certain conditions that have to be met; the company must provide proof of ownership to those depreciable assets and that has been a bone of contention between Vodafone and NCBC.”

“They have not been able to provide evidence of the acquisition of the equipment that entitles them to claim capital allowance in their financial statement,” he added.

Meanwhile, Vodafone held a meeting with GRA on Tuesday and indicated that it has engaged its tax consultants, KPMG, for the submission of the appropriate documents to back their claims.

However, Henry Sam said they will be open for an assessment after Vodafone pays thirty percent of the total payment as the law demands.

Responding to the issues Vodafone Ghana said it is holding discussions with GRA.

READ ALSO: MTN pays Ghȼ 637m taxes

In a statement signed by the Director of External Affairs and Legal, Gayheart Mensah, he said: “the NCBC (which sells fibre to telecoms companies) is undertaking a reconciliation of GRA’s computation its taxes”.

“Vodafone is a tax compliant company and currently pays indirect taxes of around GHS25m on a monthly basis to the GRA. We are a law abiding and responsible corporate organisation and are engaging with the GRA to reconcile the figures. To facilitate the process, the NCBC has contracted KPMG to assist. We are persuaded that this will be closed by the end of the week.”

“The NCBC acknowledges the mandate of the GRA to assess and collect taxes due to the government from business organisations. Consequently, the GRA’s demand of NCBC is within its legitimate line of duty, which the NCBC remains supportive of”.

The NCBC is responsible for the sale of fibre to telecom companies.

Vodafone assets to be sold within 14 days over tax default

The Ghana Revenue Authority (GRA) has served notice that it sell off the assets of National Communications Backbone Company (NCBC) within the next fourteen days should the company fail to provide proof to benefit from capital gains tax reliefs.

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