GRA Supports Companies in Difficulty to Revive Operations and Meet Tax Obligations

Accra, Ghana – The Ghana Revenue Authority (GRA) has expressed readiness to assist companies facing challenges to rejuvenate their operations, enabling them to fulfill their tax responsibilities and contribute to job creation in Ghana.

According to Ghana News Agency, the Commissioner-General of the GRA, the Authority aims to support companies in distress, not only for tax compliance but also to aid their contribution to the nation’s economic growth and employment generation. “We are more interested in seeing companies grow to meet their tax obligations,” Dr. Owusu-Amoah said during a media briefing following his visit to the revamped United Steel Company Limited, recently acquired by B5 Plus Limited.

Dr. Owusu-Amoah highlighted GRA’s willingness to engage with companies to understand their specific challenges and explore ways to help them resume operations. He emphasized that the Authority’s goal is not to shut down businesses but to ensure a balance between tax collection and employment generation in Ghana. The Commissioner-General noted the successful case of United Steel, which had accumulated tax liabilities and debts totaling over GHS 400 million. Following its acquisition by B5 Plus Limited, the new owners cleared a tax liability of GHS 149 million, benefiting from a waiver of penalties and interest. They also paid the dues of over 400 workers and rehired many of them. Dr. Owusu-Amoah mentioned that the factory is now fully operational and is expected to contribute over GHS 100 million annually in taxes.

On the subject of handling other companies with tax dues, Dr. Owusu-Amoah stated that GRA would employ all compliance measures within the law, focusing not on collapsing the companies but on revitalizing them. He explained that the sale of United Steel and the full payment of its principal taxes demonstrate GRA’s commitment to collecting taxes while ensuring continuous production and employment.

Dr. Owusu-Amoah expressed confidence that GRA is on track to meet its 2023 targets through various initiatives and enforcement actions. He commended B5 Plus Limited for their substantial investment and the impressive transformation of the factory.

Mukesh Thakwani, CEO of B5 Plus Limited, praised Ghana’s investment environment and the opportunities available. He described the challenges faced in revamping United Steel, including significant investments in equipment and infrastructure. B5 Plus has invested over $35 million in the factory, with plans to inject an additional $10 million in the next two years. The company currently employs 420 workers, with expectations to increase the workforce to over 500 as production expands.

Thakwani also announced the company’s commitment to paying between GHS 100 million and GHS 150 million in taxes once operational. He appealed for support, including a ban on products that the company could competitively produce, to leverage the AfCFTA agreement and target markets in Ghana, West Africa, and the entire African region.